Why Is The Indian Economy Shrinking? Can The Economy Uplift Again?
- BY Jaspreet Kaur
Feature Writer, BusinessEx
- Oct 17,2018
- 11 Mins Read
From the onset of 2018, the Indian economy has been bearing major as well as minor storms. Some hefty storms uprooted the economy, such as execution of GST Bill (2017) whilst minor storms like the weakening status of Indian currency is shaking the economic structure from top to the bottom level. As a result, the market is also impacting inhabitants and flourishing the downsides of the country. Poverty, unemployment and literacy are a few areas, which are hammered by leaping down of the economy.
Employment Of Skilled Labour- A True Solution
In this hour of need, the regime does not have a solution to shore up the economy other than taking tactical measures to minimize losses. However, there is another way to fortify market that is, employing more skilled labour.
In India, the difference between employed and unemployed population is huge like the literacy rate of the country. According to the Centre for Monitoring Indian Economy, “Demonetization had led to a sharp fall in the labour participation rate. Before demonetization, labour participation was of the order of 46-47 per cent i.e. about 47 per cent of the working age population were either working or were looking for a job before demonetization. After demonetisation, this ratio fell continuously till it dipped to just below 43 per cent where it seemed to have stabilized. However, in August 2018, it fell sharply to a new low of 42.5 per cent.”
The report shows that the employment rate has gone steeply down as compared to the last year. In this scenario, it becomes difficult to gauge the organizational health of the SME and giant companies. To minimize bad effects, companies co-opt business extension programs to back the business in the short run. Though, these strategies can’t finance organizations for long. A suitable example of Indian banks is apt here. In 2017, many banking institutions lent a substantial amount of loans to corporate leaders and business tycoons; gradually, this decision proved fatal for the institutions as debts outsized profits and subsequently, institutions ask for bailouts.
Ways To Alter Economic Condition For Good
To recover from such losses, the economy should actively invest in the human resource as human resource is the most valuable resource presently. Japan is an exemplary here, which employed human resource in utmost level to alter socio-cultural-environmental damage.
Most of the essential ways to recover from the dark phase are:
- Investing In the Right Leaders
A leader hugely impacts an organization and, in turn, the economy in some way. Owing to which, investments and disinvestments are impacted by his outlook and decision-making process. Thus, it is emphasized to educate, coach and give advisory help to leaders. By constant guidance and altering a leader's perspective can greatly aid an organization. Furthermore, the organization will invest time in hiring the right workforce for the right job.
- Employee Engagement
Employees are a crucial part of the organization. They are delegates of the organization in the market; they deliver a company’s product and services to general masses. Thus, it is eminent to coach them and keep them active members of the company. For that, employees should be engaged in the organization’s decision-making process and also be trained to render positive company insight into customers.
These suggestions are effective in strengthening and uplifting the economy.
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