by Vivek Kumar
“It is worrisome that consumer confidence is low. But it is not India-centric. This is a global trend and depends on various international factors such as US-China trade war.
The reports of declining economic activity in India are worrisome, but technically speaking, the recession is not so simple, says Melbourne-based economist Dr Vinod Mishra.
“Negative growth for two consecutive quarters is considered a recession. The situation is not that bad. GDP is still growing positively; although it is much less than the earlier estimates. However, in broad terms, a recession is a significant decline in economic activity. So yes, there is some economic slowdown,” says Dr Mishra of Monash University, Melbourne.
The auto sector is one of the worst hits.
Many sectors in India are feeling the heat of the decline in economic activity.
The #recession is now felt very close to where it hurts the most… #India pic.twitter.com/incfzpMiF8
— Amar Jyoti (@ajmahapatra) August 19, 2019
According to the data released by the Society of Indian Automobile Manufacturers (SIAM), 200,790 lesser units of passenger vehicles were sold to car dealers in July 2019.
It is 30.9% lower than the same period in the previous year. The sales of automobiles in India declined by nearly 19% in July.
“Decline in the sales of consumer goods happens when the consumers lose confidence in the future,” says Dr Mishra.
“It is worrisome that consumer confidence is low. But it is not India-centric. This is a global trend and depends on various international factors such as US-China trade war.
??Economic development in India, after Modi 2.0 formation.Every sector facing recession & lotmany Industries shattered down, JETAIRWAYS almost gone & Aviation sector ruined.?मोदी है तो मुमकिन है? pic.twitter.com/klxKoTndCP
— Vijendra Verma (@VijendraTijara) August 18, 2019
“Indian economy depends much upon the oil and sanctions on Iran are causing issues,” says Dr Mishra.
Article first published in SBS Australia.
