India economy predictably grows 4.3% in July-September (Q3) this year according to Singaporean DBS. The growth indicates a slowdown from the previous quarter.
“Real GDP is likely to print 4.3% Year-over-Year in Q3 vs Q2’s 5%, nearing the trough for this cycle,” DBS said.
Among many factors, the ones affecting the decelerating economy are regarding weakening consumption, poor private sector activities, and non-merit subsidies. Societies’ dissatisfaction and sentiments over income and employment also heavily affect the slowdown, Reserve Bank of India’s (RBI) survey reported.
Weak exports also color the slowing economy of India. Reportedly, there is a sharp fall in non-oil and non-gold exports.
The slowing economy of the country also comes from the direct and indirect tax collections. In addition, the credit growth is also sluggish as banks tighten due diligence.
The real figure of the country’s Q3 GDP, however, will be officially announced on November 29.
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India Economy Massively Influenced by its Politics
Popular talks have discussed that India will soon become the world’s fifth biggest economy in the not too distant future. Despite the prediction, the wealth gap between the rich and the poor is still notably high.
Given the economic condition, some analysts argue that this is due to India’s very own political views. To describe the political views, analysts would like to use the term ‘naturally populist, seldom liberal.’
Considering the above term, India’s preamble is closely associated with semi-socialist economic model. The populist views are heavily influential in India in multidimensional spheres of societies.
If the government were not able to subsidy people’s needs or fail to satisfy the needs of the poor, then it would be very easy to label it as the government for the rich.
Put simply, the immediate judgment indirectly influences government’s policies. Hence, long-term attempts to repair and plan the economy are rarely made than populist attempts.
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