Indian Economy: As and where it stands today

Narendra Modi came into the regime and earned his throne as the prime minister back in 2014. Before the elections in 2014, Narendra Modi had addressed a lot of issues and ensured solutions to each one of them. Throughout the course of these 5 years & a few more months to the newer tenure, he along with his party has kept on making promises to make India a superpower. After 5 & a half years, one can debate if Narendra Modi has really been the man of his words. Let's find out where our economy stands today to give a better analysis of India's current state.

Unemployment Rate 

One of the biggest promises that BJP made when they arrived into the power back in 2014 was to ensure a great employment rate. However, things don't look pleasing at all for a past number of years. The world Bank claims that India has to make 8.1 million jobs a year to keep a stable employment rate. India's unemployment rate has raised to 7.6% in April 2019. India's youth which constitutes 40% of India's labor rate has an unemployment rate of 32% which is a shocking number. The unemployment rate of graduates was 13% in April 2019, up from 10% from April 2017. Clearly, India's unemployment rate is getting higher and higher.

GDP Rate

GDP refers to the Gross Domestic Product and represents the monetary value of goods and services produced within a country during a period of time. It doesn't look too good either. The GDP Rate saw a growth of 5% in the second half of 2019, decreasing from 5.8% of GDP growth rate in the first half of 2019. It is the slowest growth rate in the last 7 years. India's GDP growth rate was at an all-time high back in the first quarter of 2010 standing at 11.4% & it has not grown in double digits ever since.

Inflation Rate

One aspect where Modi government has gotten it right is the inflation. Higher inflation leads to the costlier standard of living and no country wants such a situation. India's inflation rate currently stands at 3.21% and it is a good situation for the consumers. The important thing with inflation rate is that it has to remain stable no matter if it is high or low otherwise it can create disturbances in the market & currently inflation rate is standing very still with very little of disturbances.

India's Manufacturing Sector

India's Manufacturing Sector is one of the biggest contributors to the economy. If our economy has to do well, the manufacturing sector always has to play a big part in it.  Although the employment rate has gotten low in general, Manufacturing Sector still provides employment at a high rate. According to the PMI survey, employment has risen rapidly I'm the manufacturing sector for the last 6-7 months. PMI rose to 52.5 in July for India's Manufacturing Sector. A score about 50 means expansion and a score of 52.5 derives for India's Manufacturing Sector makes up for positive signs.


Indian rupee keeps on getting depreciated in comparison to US Dollar from time to time. Although recently the value of Indian rupee has become slightly better. It stands at a 71.20 in comparison and is in a better position than it was last year. Although it is still a sign of worry for the Indian economy. In October 2018, the Indian rupee was at a record 74.48 which was an all-time high. Clearly, the Modi Government has failed to promote exports & decrease imports.


After going through the aforementioned points, one can easily analyze where our economy stands today. Government has planned out many things and there are so many schemes that it is working on. Sadly, the implementation has been all over the place. Ever since the demonetization, Indian economy has not ever truly recovered and the results are in front of everybody. The government has to realize that the plans are not working and make amends for it by making new plans. It is high time for the economy before it takes drastic events. Will we see changes in the near future? Will it keep on suffering from its current fate? We can only hope to see positive changes in the time to come!

Post a Comment