RIP Made in India

RIP Made in India

The Stagnant Industrial Scenario

The increase in the net domestic value in the third quarter of the last year remained much lower than the normal statistics. The limited economic expansion has created barely enough employment opportunities for the professionals. The annual number of job openings in the corporate sector is inadequate to absorb the increasingly qualified professionals. With the Federation of Indian Chamber of Commerce predicting a population explosion in the coming two decades, the circumstances are worsened further. The recession affected economy has resulted in the closing down of several multinationals. To add to the woes, the orthodox labor laws have made the organizations unwilling to hire permanent employees. The made in India tag has been endangered today.

 

Photo Credits: GranniesKitchen

Impact in Other Sectors

The limited agricultural growth is incapable of feeding the large population. The total area available for farming purposes has also come to a standstill. Apart from a few crops and grains, there is not much that India can claim as its own.

Various services like tourism, finance and trading do not show signs of prosperity. Besides, mass employment sources like the retail sectors are also becoming insufficient to fix the issue of unemployment. The introduction of FDI is therefore absolutely crucial to thrive on the retail market. This implies that the Indian brands are failing to make a substantial impact in today’s market. Again the made in India factor is at a risk.

Dollar versus Rupee

The falling economy has been one of the consequences of the scarcity in the made in India label. The dropping of the 10 basis points by the Reserve Bank of India has resulted in the liquidation of the assets thereby enhancing market operations. The standardized benchmark fluctuates at around 8.68 per cent. The Indian currency partially rose a little against its 62.44 versus the dollar. The RBI came up with flexible norms to help the borrowing of overseas funds. The maturity tenure of the foreign currency had been relaxed. This plan was intended to support the ailing rupee.

 

Photo Credits: a l e x . k

The Positive Outlook

The economic growth of the nation has been alarmingly low in the last few years. A recent research by Goldman Sachs (a major Investment Bank of UK) has predicted a major turnaround in India’s fortunes by next year. The experts believe that the policy reforms in the Indian stock market will appear to be quite effective in the future. The coming one year is expected to witness major GDP changes for the better. The economic measures implemented by the government also promise a brighter tomorrow. The welcoming of the foreign brands to merge with the retail market has been another important step towards restoring the economic crisis. Massive infrastructural projects undertaken by the government also show signs of recovery. The eventual stabilization of the global financial scenario will also contribute to India’s economic growth. Financial advisers of the nation have devised the ‘bathtub shaped’ approach to the problem. In spite of ranking poorly in the global productivity parameters, India is believed to have a much better possibility of reviving its financial market in relation to the other nations of the BRIC (Brazil, India, Russia, and China) model. Optimists say that the made in India label will become a common thing in the near future.