The growth rate of total imports from an annual average of 31.3% in low growth periods has currently come down to 23.6%, thanks to the indigenisation drive by the government in defence, power, steel, machineries, among others.
There is an oft-repeated comment that tries to lift up the sagging morale of an individual. In today’s media-based networking, the “Think Positive” advice has gained immense popularity. It has firmly attained its unique space in the managerial teachings in colleges, motivational discourses and Behavioural Economics.
To use this term while looking at the current state of the industry sounds devoid of any argument. But it brings back the immediate need of doing a critical analysis of the reasons for the decline and prodding us to strategise for getting over the crisis. And the implementation of these strategies has to be pursued with dedication and commitments.
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One way of evaluating the economic performance is to compare the lowest growth periods and take lessons. During FY13 and FY14, India’s GDP grew by 5.5% and 6.4%, respectively which currently stands at 6.8%. During FY15 and FY19, India could achieve an average GDP growth exceeding 7.5%. These two low growth years had agricultural GVA growing by an average 3.5% against FY19 growth of 2.9%. Agriculture despite weakening linkages had a pulling down impact on industry and therefore the average industrial growth measured in terms of GVA came down to 3.5% in those years against the current growth of 6.9%.
Source: Financial Express
