Identify India recent data and trends in economic growth une

Identify India recent data and trends in economic growth, unemployment, poverty, and Inflation about India. Identify at least one recent macroeconomic news or magazine article conceming about Inida.1) characterize the macroeconomic state and direction of your country, 2) Identify what you belleve is the major macroeconomic challenge facing India, and most Importantly, 3) recommend a macroeconomic policy (fiscal, monetary, trade, systematic refomm, or long-term growth) to the leaders in India. Explain why your policy might help in Indian economy.|

Solution

Considering Indian data, it has been observed that the country is following an upward trend in terms of economic growth rate data measured in terms of Gross Domestic Product (GDP ) growth rate of the country. However, the economic growth rate of the country fell down after the government introduced currency swap or demonetization. This was because of the cash crunch in the economy . But the economy has recovered from the wave of demonetization. The unemployment rate in India is high because of jobless growth. Majorly structural type of unemployment is seen in India because of lack of skill development in the country.

One of the current news about India that is gaining importance these days is Goods and Services Tax (GST) implementation. The current news articles have raised some concern about its high rate of maximum 28 per cent in India. Such a high rate has led to fall in disposable income of people and thus declined consumption level in the society and thus GDP growth rate.

Government should lower down the GST rate otherwise it will have drastic impact on economic growth. It has been observed that government has reduced some rates. It is recommended that initially if the tax rates are kept high then government should increase its spending otherwise it will lead to fall in economic growth rate of the country.