your password has been reset successfully, Please login again.

Why Is The Indian Economy Shrinking? Can The Economy Uplift Again?

learn the actual causes of shattering down of Indian economy and effectual ways to mitigate them
BY Jaspreet Kaur
Feature Writer, BusinessEx
Oct 17,2018

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:

  1.    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.

  1.    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.

  

Please add your Comment
SIMILAR Articles
December 03, 2019
Thomas Cook India lately proclaimed that it has inked an agreement with Thomas Cook UK’s special man ...More
By Jaspreet Kaur
December 02, 2019
Cloud Storage (also known as Cloud) is a vital tool that every business should use nowadays; it does ...More
By Jaspreet Kaur
November 16, 2019
To make your business a renowned brand, it is important to concentrate on improving customer experie ...More
By Jaspreet Kaur
November 12, 2019
By switching to privatization mode in state-run oil companies, this move alludes to another way to b ...More
By Jaspreet Kaur
November 12, 2019
In this move, the government proposes to offer INR 25 crore or 70 per cent of the project expenses f ...More
By Jaspreet Kaur
November 11, 2019
YourOwnRoom offers strategically located co-living and family homes to millennial tenants that are c ...More
By Jaspreet Kaur
November 08, 2019
Trailing the steps of Amazon and Flipkart, many small e-commerce players emerged in the market and g ...More
By Jaspreet Kaur
November 07, 2019
The joint venture, Maruti Suzuki Toyotsu India Private Limited (MSTI), is formed between Maruti Suzu ...More
By Ritu Marya
November 06, 2019
By assessing the air quality, it would be easier to have a basic idea as to how poor air quality is ...More
By Jaspreet Kaur
November 06, 2019
In a bid to promote the startups, the Indian government has reportedly proposed to permit startup fi ...More
By Ritu Marya
November 04, 2019
Despite the depressing phase of Thomas Cook, some of its bureaus are not affected by its shutdown an ...More
By Jaspreet Kaur
November 04, 2019
BeYouPlus administers high-quality services and immensely surge footfalls at the clinic by ensuring ...More
By Jaspreet Kaur