Economics Essay, UON, Malaysia India’s income has grown at its slowest rate in almost five years, according to the latest data released by the government
University | University of Nottingham (UON) |
Subject | Economics |
India’s income has grown at its slowest rate in almost five years, according to the latest data released by the government. In the past financial year – April 2018 to March 2019 – income grew by 6.8%. And in the quarter between January and March 2019, it expanded by just 5.8% – falling behind the rate of China’s growth for the first time in nearly two years. This means India is no longer the world’s fastest-growing economy. The new data make it clear that India is facing an economic slowdown.
Unlike China, India’s growth in income has been driven by domestic consumption over the past 15 years. But data released over the past few months suggest that consumer spending is slowing, despite the continuing growth in incomes. Motorbike and scooter sales are down. Demand for bank loans has slowed and India’s leading maker of fast-moving consumer goods, such as packaged food and drink, has reported slower revenue growth in the past quarter. However, sales of smartphones have continued to increase faster than incomes have been growing. All of these are important indicators for measuring the state of consumer spending.
The government has promised that it would cut income tax to ensure greater purchasing power and some economists believe that the government should also consider cutting business taxes in the next budget, which will be announced in July 2019. These measures should act as a stimulus for the economy.
India’s government has promised to spend US$1.44 trillion to build roads and other infrastructures such as bridges and street lighting, but India’s large budget deficit might restrict the government’s options. Many observers say that this money will have to come from the private sector. Experts say that the widening fiscal deficit will hold back medium-term and long-term growth.
Weak exports have also been a problem when it comes to creating jobs. In response, the government is expected to prioritize policies that will make Indian businesses more competitive.
1. Interpret the value of 0.75Yd in the consumption function and 0.2Y in the import function.
2. From the article above, a) Calculate import expenditure as a percentage of total demand in India in quarter 1 2019.
b) Calculate the equilibrium of national income in India.
c) Calculate the value of consumption at the level of national income equilibrium in India.
3. If the government increases its spending by US$ 120 million,
a) Calculate the size of the multiplier.
b) Calculate the changes in national income.
c) Show the changes in national income by using the injection-withdrawal diagram.
4. Using the information from the article, explain whether the supply-side policy could make Indian businesses more competitive. (6 marks)
Are You Searching Answer of this Question? Request Malaysian Writers to Write a plagiarism Free Copy for You.
Get Help By Expert
Discover a seamless academic journey at the University of Nottingham by harnessing the power of Online Assignment Experts. Assignment Helper My offers a unique Essay Writing Service, committed to crafting tailor-made assignments that ensure your success. Our skilled professionals cater to diverse subjects, ensuring high-quality essays and papers. Step into a world of academic advancement and reach your goals with our trusted online assistance.
Recent Solved Questions
- Business Analytics Assignment, UiTM, Malaysia The Eastland Plaza Branch of the Indiana University Credit Union was having trouble getting the correct staffing levels
- UCS422: Cybersecurity for Non Computing Sciences Case Study, UiTM, Malaysia Your organization is planning to adopt BYOD which allow the employee to bring their own devices to accomplish the organization’s task
- Entrepreneurship Assignment, SU, Malaysia By focusing on its strengths, its key customers, and the company’s underlying core values, Acme Management Technology
- Business Law Assignment, TU, Malaysia On 1.12.2022, Marie offered to sell her porcelain doll to Lisa at RM200.00. Six days later, on 7.12.2022 Lisa rang Marie
- CHE471: Chemical process principles I Assignment, UiTM, Malaysia There are some electroplating factories around the Klang Valley area, that do not have good facilities for wastewater treatment
- Environmental Health Ethics Assignment, MU, Malaysia First-world countries like the USA, the United Kingdom, and other European nations have boasted high rates of recycling
- CDCN3103: Introduction To Computer Networking Assignment, OUM, Malaysia Digital Farm is a renowned local company running server farms. Due to its successful digital hosting-related services
- HBET1103: Introduction to General Linguistics Assignment, OUM, Malaysia Writers create rules that supposedly apply to all human communication, but these rules are often proven to be not universal
- Certification in AML Assignment, ICTA, Malaysia You are a member of the anti-money laundering (AML) team of a regulated financial services firm operating in Malaysia
- Information Marketing Assignment, TU, Malaysia An info product is any product that can be digitally created, sold, and transferred to your customer