India has been losing ground on the global stage for the past 15 years, and the slowdown in its economy has only worsened its economic woes.
India is now the second-worst performing economy in the world behind the US, the Economist Intelligence Unit (EIU) said on Tuesday, citing data from the World Bank.EIU’s World Development Indicators (WDI) forecast showed India’s GDP shrinking by 5.5% in 2016-17, compared to 6.3% in 2015-16.
This has been offset by growth of 2.7% in the past fiscal.
This, coupled with a decline in the country’s real GDP growth, has seen the Indian economy slide to the lowest point since 2009, according to the World Economic Forum (WEF) World Economic Outlook 2017.
“The economic recovery is more than just the result of the Narendra Modi government’s reforms, and its policy changes, which have lifted the economy,” said EIU’s senior vice-president, Amitabh Desai.
“In a short space of time, India’s growth has slumped to the level of zero in a short span of time.
This is a disaster.
The country cannot afford another year like this.”EIU forecast that India’s gross domestic product (GDP) will shrink by 4.7%, compared to 4.5%, in 2019-20.
The slowdown in the economy, coupled by weak growth in manufacturing, has led to a steep fall in GDP growth.”GDP growth has slowed in India due to a number of factors, but there is a clear connection between the slowing growth and a sharp fall in the quality of life, the environment and healthcare,” Desai said.
“As the country faces the worst economic crisis since the 1930s, India cannot afford to continue the economic malaise that it is experiencing right now.
The government should urgently take measures to reverse the decline in its GDP.”
The Indian government has promised to revive the economy and revive manufacturing by increasing exports.
In September, the government increased import duties on some products to stimulate the economy.
However, India has not done so much as reduce the import duty on its most important export: the fertiliser and fertiliser product, a key ingredient of irrigation.
It has only increased the import duties for other products, like cement and steel, which are used in the manufacture of cars.
According to the IFS, India imported around $10 billion worth of fertiliser products in 2016, while importing about $5 billion worth from China.
India has been importing about one-fifth of the world’s fertiliser, which it uses to irrigate its crops.
The fertiliser used to grow crops is produced in India, but is exported by the Chinese.
Eighty percent of the fertilisers that are imported to India come from China, the World Trade Organization (WTO) has said.
In 2016, India exported around $8.6 billion worth fertilisers.
India’s imports of cement and cement products have also declined sharply, according the IFAW.
It is not clear if this is a result of lower quality or cheaper domestic cement, as India’s cement industry is relatively small compared to the Chinese market.
India’s imports in 2016 also fell slightly in terms of cement-grade cement and iron-oxide-semiconductors (IONPS), the IWTO said.
India imports about $3.6 trillion worth of cement from China each year, according a report by India’s National Sample Survey Organisation (NSSO).
India imports about one fifth of the global supply of cement.