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What is the main reason of GDP is falling down day by day in India?

Question asked by Durgesh Srivastava in #Debates #Indian Political on Jan 16, 2020
Durgesh Srivastava
Durgesh Srivastava · Jan 16, 2020
Rank C1 - EXPERT

GDP of india is falling down day by day. What is the main reason of fallen down of gdp rate. Give me the correct answer.

Posted in: #Debates #Indian Political
Vinay Mishra
Vinay Mishra · Jan 17, 2020
Rank B2 - LEADER

There is not a single factor but are a number of factors responsible for the down rate of India's GDP.

1) Low demand rate: Demand is the main factor that directly impacts the economy. It's directly proportional to production. I mean if the demand for any product increases the production should also increase. If production increases then the need for hiring more labor force is a must. (employment opportunities)

But since the last few months, the Indian economy is facing the problem of lower demand rate which affects the whole economy.

2) The poor condition of banks: As we know Indian banks are going through hard times. Many banks announced to merge their system. Recently from a report, I get to know that the NPA of Indian banks fallen to 7.6 lakh crore which creates a barrier in the way for demanding new loans. 

This condition of banks also impacts the investors. 

3) Agriculture Crises: Indian agriculture contributes about 15% in GDP. Indian agriculture has always been a major factor in India's growth in the economy. But this sector is also facing hard times. There are a lot of miss-understandings and communication problems between Indian farmers and the Indian government. Farmers are committing suicide because they are not getting adequate prices for their crops. The suicide rate of farmers is continuously increasing day by day.

These are the main factors that are responsible for the falling rate of Indian GDP but this is not the end, There are many more like investments, taxes, etc. but I think those all will be cured if we're focused on the main factors.

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