With decade GDP growth rate of 7.8 percent Indian economy has been emerged as one of the fast growing economies in world and showed great trust and promise to global economy. But suddenly, Indian economy has lost the entrenched feeling of trust with 6.2 and 5 percent GDP growth rate in last two years and now facing unprecedented rupee depreciation. Indian Government and Central Bank are in conciliation mood and are bringing more reforms and extending FII and FDI cap in several sectors to attract more foreign investment to Indian economy.
What are the reasons behind the derailed economy and how it will be back on the track are most decisive questions before Indian government to revive the economy and to gain trust of foreign investors. In this blog, You will find various reasons behind rupee depreciation and slowdown of economy.
Why Indian Economy has been derailed after great decade growth and what are the reasons behind this unprecedented decline and rupee depreciation ??
These are following reasons that have affected Indian economy and its growth.
A. Unstructured and Ad-Hoc reforms
B. Unstructured and Ad-Hoc Inclusive growth policies
C. Entrenched Corruption in System
D. Negative Signals to Foreign Investors: 2G- Scam, Coal Gate, Chopper Gate
E. Sectarian politics
F. Ambiguous foreign and economic policy
G. Delayed Infrastructure projects
H. Non-alignment between RBI and Finance ministry
I. Less export, High Import (Gold).
J. Delayed RBI intervention
K. Less Foreign investment
L. Chaos and distrust and Over-reaction
M. Governance and politics: in-stability in various part of country.
These are the above reasons are responsible for the current situation of Indian economy and unprecedented rupee depreciation. In my next blog, I will highlight all reasons in detail with economic terms and also give complete structure or path to revive our economy.
Disclaimer: Above thoughts are personal thoughts of author and not intending to hurt feelings of any individual or community.
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