Indian Economy is surely and affectively on Growth Path

With reports coming in from authorized and authentic agencies the Indian economy is surely picking up and this time round things may be quite good with it. Of course, the GST ought to have been passed in the parliament as most states stand to gain from it. This may be an obstacle yet things are moving in the right direction.

Hopefully, the parliament may see reason instead of stalling it and then some kind of truce with the land bill and there would be no looking back for the Indian economy despite the problems in the world economy. After all, there must be boost in investments all around that would boost the job opportunities and smoothening of the rules and regulation is the foremost to bring about the necessary transparency and bring in investments.

Surprising Improvement

It is undoubtedly surprising for the Indian economy to show signs of strength while battling out the black economy. In fact, it was the sum total strength of the white and the black economy that actually drove the whole country in the past few years. As on now throttling the black economy both internationally and domestically would show a downward shift of the business cycle leading to trough like situation as this would be the case in all economies where there is a significant percentage of black economy when compared with the white economy.

However, what is most surprising is that this hadn’t happened and there are already signs that things are getting better. Understandably there must be no let up while subjugating the black economy as in the short run its immediate impact would be on the real estate and automobile segments. Naturally, those industries depended upon these two sectors too would show a slump in their sales and profitability.

It is quite apparent that when you throttle the second economy or the black economy you naturally shave off a few percentage of GDP as well. Then it takes time for the black bosses to reason out that the real primary economy is here to stay and not the black economy. Hence, transition of investment from the black economy takes time. 

Many of the developing nations where the black economy is a significant contributor to the overall GDP this would have been a painful process. In such cases one can easily determine a full year or more for the recovery process to actually start. But luckily this is not the case with the Indian economy and hence we may hope for the best in the near future and far future too.

The informal economy that is positively serving the economy need to ensured of easy access to loan so as to bring about the much needed social stability through employment. The financial institutions need to be more strategic in this regard with softer loans not exceeding a particular limit.