{"id":34874,"date":"2018-10-31T14:16:38","date_gmt":"2018-10-31T08:46:38","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=34874"},"modified":"2018-10-31T14:16:38","modified_gmt":"2018-10-31T08:46:38","slug":"how-deep-is-indias-economic-mess","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-deep-is-indias-economic-mess\/","title":{"rendered":"How deep is India\u2019s economic mess?:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/www.livemint.com\/Opinion\/sVihGteBGUtMriL0vVcrSN\/How-deep-is-Indias-economic-mess.html\"><span style=\"font-weight: 400;\">How deep is India\u2019s economic mess?<\/span><\/a><span style=\"font-weight: 400;\">:\u00a0<\/span><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Hindustan Unilever chief executive Sanjiv Mehta said that rural demand for its products has been weak because of the lingering effects of demonetization as well as the farm crisis.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Larsen &amp; Toubro group executive chairman Anil Naik said that private sector companies are not in a position to launch new projects because of the excess debt they have on their balance sheets.<\/span><\/li>\n<\/ul>\n<p><b>Reasons for slowdown: \u00a0\u00a0<\/b><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Sharp slowdown in quarterly growth due to inventory destocking by companies before implementation of the goods and service tax (GST).<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Technical problem of the deflators used by government statisticians to convert nominal output growth to real output growth.<\/span><\/li>\n<\/ul>\n<p><b>Manufacturing Purchasing managers index (PMI):<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It moved into expansion territory in August after the slump in July.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The data for cement, coal and steel continues to be disappointing.<\/span><\/li>\n<\/ul>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Foreign trade offers a ray of hope.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The high frequency indicators suggest that economic growth in the second quarter could see recovery from the disappointing levels of the first quarter.<\/span><\/li>\n<\/ul>\n<p><b>Present growth:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Growth in gross value added has come down from 8.7% in the quarter ended March 2016 to 5.6% in the quarter ended June.<\/span><\/li>\n<\/ul>\n<p><b>Asian Development Bank (ADB) data:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">According to the recent data released by the Asian Development Bank (ADB) offers some clues on the current state of the Indian business cycle.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The Indian economy bottomed out in the third quarter of 2013, according to ADB.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The subsequent upturn in the business cycle has lasted 14 quarters, higher than the average business cycle upturn of 12 quarters but lower than maximum of 18 quarters.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">High-frequency data suggests that the Indian economy could see a small recovery in the second quarter of the current fiscal year while business cycle data shows that the cyclical expansion could be running out of steam.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>How deep is India\u2019s economic mess?:\u00a0 Context: Hindustan Unilever chief executive Sanjiv Mehta said that rural demand for its products has been weak because of the lingering effects of demonetization as well as the farm crisis. Larsen &amp; Toubro group executive chairman Anil Naik said that private sector companies are not in a position to&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/how-deep-is-indias-economic-mess\/\">Continue reading <span class=\"screen-reader-text\">How deep is India\u2019s economic mess?:\u00a0<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-34874","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704864000},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=34874"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/34874\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=34874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=34874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=34874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}