Macroeconomics in India

Macroeconomics in India

Macroeconomics as a branch of economics deals with the structural, behaviour, decision-making and performance of an economy rather than individual markets. Here are two factors to look at when talking about macroeconomics in India.

* The Economic growth and

* Inflation Situation

Economic Growth

India has a weak global growth. The growth decline has let to negative output gaps for years. The chances of the country’s growth rate in 2016-17 to increase beyond 2015-16 are not very high considering the global slowdown in the economy. The country’s Fiscal deficit was $86.49 billion during February and has been and going to be persistently large in the coming years. Due to this, the country faces certain challenges like

* It leaves no room for new government to spend on high social priority areas

* Also , higher interest payments for the country.

Below is the GPD growth rate of India from 2010 to 2020 .

Another sector to look at in the economic growth is Employment rate. The unemployment rate in India keeps on decreasing drastically. The rate of unemployment is set to decrease more the coming years.

INFLATION

Inflation remains persistence despite the slow growth rate. Below is an inflation rate from 2010 to 2020. It is calculated using the price increase of the defined product basket.

The inflation rate in 2016 is 5.52% but is expected to drop by 0.10% in 2017 and even drop further.

References

B. M. (n.d.). Current Macroeconomic Trends in India.

April-February fiscal deficit at $86.5 billion: Government - The Economic Times. (2016, March 31). Retrieved April 02, 2016, from http://economictimes.indiatimes.com/news/economy/indicators/april-february-fiscal-deficit-at-86-5-billion-government/articleshow/51633292.cms