Issues within Indian Economy and Recommendations

Abstract

The purpose of this study is to understand key issues in India’s Economy, prevalent before Covid-19 as well as arising after the Pandemic. It aims to cover four topics in detail namely India’s international trade focussing on declining trend in exports, Farm loan waivers, Unemployment Migrant Workers Crisis and Banking System Crisis. It intends to identify the impact of declining exports on GDP as well as how India is shaping up in respect to changing globalisation. As far as farm loans are concerned, it gives out a picture of asymmetry in reach of agriculture credit as well as impact of farm loan waiver on the government fiscal. Simultaneously it aims to comprehend on Unemployment and problems associated with numerous migrant workers in India post the pandemic. It also throws light on the shadow bank crisis, rising levels of non-performing assets and concerns of co-operative banks. The study also draws conclusions on how the country can adopt better measures with respect to above discussed issues post the COVID-19 pandemic. A detailed statistics in the report illustrates the trend of falling exports, underutilisation of Special Economic Zones, rising farm loan waivers, asymmetry in agriculture credit, rising unemployment. Evidently, a lot can be done to curb these issues moving forward as India being the third largest economy has an immense scope for development. India can resume its high growth trajectory as well as aim for a sustainable growth in the long term by following the measures provided here in the study. In order to achieve the objective and maintain the motivation of the study various articles and research papers have been reviewed and investigated and therefore for the same reason their excerpts have been disclosed herein the report. To sum it up, considering all the information that has been exhibited here in this study, a detailed set of conclusions and recommendations have been also rendered to achieve the objectives of a developing economy.

Keywords: Exports, COVID-19, Agriculture, Farm Loan Waivers, Unemployment, GDP, Migrant Crisis, NBFCs, Banks, Banking Crisis

JEL Classification: F1, F01, G21, G23, Q12, Q13, Q14, Q15, R23, J21