“In addition to the existing slowdown in the global economy there are a lot of other uncertainties such as the US-China trade war, BREXIT, the new outbreak of COVID-19 will have a severe impact on Global and Indian economy”, says Rajesh Nath, Managing Director of German Machinery and Plant Manufacturers Association (VDMA), India.
Talking with us recently at Pune, Rajesh Nath said that there will be about half a percent decline of growth on the global economy due to the Corona Virus. “The forecast of the growth of GDP globally was 2.8% and it has already dipped to 2.3%, but the larger impact will be on India as it forecasted a GDP impact of COVID-19 will be to the extent of -1.1%”, added Rajesh.
While explaining the different causes of a slowdown in the economy, Rajesh said that unlike China; India has a strong domestic market and is not completely dependent on the export market. Indian industrial sector has slowed down largely because of the slowdown in the domestic consumption and the rural economy of the nation. The cases of non-performing assets of banks, policy changes, and conversion from BSIV to BSVI, EVs, and the other uncertainties revolved around hit automotive industry, which is a major influencer of the Gross Domestic Product (GDP) growth of the nation.
India is aiming to become a USD 5 trillion economy and it is achievable only if the nation is growing at a rate of 10% every year, thus the current situation is not good for the Government projections. The Government should give impetus to the development of the infrastructure with prudent spending, which will help regenerate and boost the economy
