Impact of slowdown
Economic slowdown will affect the local businesses from services and manufacturing.
Economic slowdown will affect the local businesses from services and manufacturing.
Brief:
Business standard reports that economy has slowed down in FY19 . It grew the slowest in the past six quarters( 6.6% in Q3 FY19). FY 19’s GDP growth is 7%. It still remains one of the fastest growing economies.
Reasons for slowdown are decline in fixed investment, lower private consumption, government expenditure and declining exports.
Agriculture and industry also failed to grow as they did in the past.
How does it impact Delhi-NCR?
Lower private consumption means consumers will buy less goods and services such as FMCG products, white goods, four wheelers & two wheelers, restaurant food, clothings, and houses.
Lower fixed investment means lack of new businesses in key sectors such as manufacturing and services.
Lower government expenditure means slower building of infrastructure.
Lower exports means loss of jobs for the people working in the export houses.
Bigger picture
In the past economy has slowed down after 2008.
The focus of the current government should be creating more business opportunities and more jobs.
Helping local businesses with friendly policies and finance helps kickstart growth.
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