ECONOMIC SLOWDOWN?? NO PROBLEM.
In economics, a recession is a business cycle contraction where there is a general decline in economic activity. Slowdown in the spending can easily lead to a stage of recession. Financial crisis, external trade shock, an adverse change in supply, or bursting of an economic bubble could easily be a reason for an economic slowdown. The US defines it as “a significant decline in economic activity spread across the market, lasting more than few months, normally visible in GDP, real income, employment, industrial production, wholesale and retail sales”. In the UK it is defines as the UK it is defined as a negative economic growth for two consecutive quarters.
India is undergoing such a slowdown now. It is very much evident from the GDP as well as from the automobile industry and real estate industry. The current scenario in India is no better than a sinking ship. Before it reaches a stage of irreversibility, the grievance has to be attended; else it would be a catastrophic for our economy. The falling value of rupee, slow growth rate and inflation rates are signs of dooming economy. Volatile situations in the Gulf regions, weakening of major export market such as iron ore, high import cost of oil and coal are some of the factors of sudden slow down.
Contradictory to the economic situation in India the new entrants to the Indian automobile industry such as the Kia Motors and the Morris Garage are doing reasonably well. The Kia Seltos has crossed a remarkable sales point of 40000 units. Following it the MG Hector has also made sales of 13000 units since its launch India. Why is this negative correlation experienced in India? Mr. Gaurav Gupta (chief commercial officer of MG) believes that this is due to low prepaid maintenance package that starts from 8k and due to the first in segment 5 year warranty. There are many reasons for the phenomenal success of these brands in India despite of the economic slowdown. They were able to position this in the most appropriate segment and price point as it is a time when the whole buyers are behind the SUVs. Any tech-auto enthusiast would be easily flattered by the specifications and features offered by these two brands. The technical innovation that these vehicles possess would be highly appealing to young buyers. Another remarkable brand that hit the Indian market in 2019 was UNIQLO- a Japanese casual wear brand which is also doing reasonably well.
These three brands are breaking the stereotype of economic slowdown. But the slowdown is evident in the other industry. As it is said better late than never some measures are to be taken like attracting investment, export widening by focus market and product scheme, increasing oil inputs from Iran as they would accept total payments in rupees, sell gold bonds with 5 year maturity which is an exact gold substitute; reduce subsidies, insurance, pensions etc…
In economics, a recession is a business cycle contraction where there is a general decline in economic activity. Slowdown in the spending can easily lead to a stage of recession. Financial crisis, external trade shock, an adverse change in supply, or bursting of an economic bubble could easily be a reason for an economic slowdown. The US defines it as “a significant decline in economic activity spread across the market, lasting more than few months, normally visible in GDP, real income, employment, industrial production, wholesale and retail sales”. In the UK it is defines as the UK it is defined as a negative economic growth for two consecutive quarters.
India is undergoing such a slowdown now. It is very much evident from the GDP as well as from the automobile industry and real estate industry. The current scenario in India is no better than a sinking ship. Before it reaches a stage of irreversibility, the grievance has to be attended; else it would be a catastrophic for our economy. The falling value of rupee, slow growth rate and inflation rates are signs of dooming economy. Volatile situations in the Gulf regions, weakening of major export market such as iron ore, high import cost of oil and coal are some of the factors of sudden slow down.
Contradictory to the economic situation in India the new entrants to the Indian automobile industry such as the Kia Motors and the Morris Garage are doing reasonably well. The Kia Seltos has crossed a remarkable sales point of 40000 units. Following it the MG Hector has also made sales of 13000 units since its launch India. Why is this negative correlation experienced in India? Mr. Gaurav Gupta (chief commercial officer of MG) believes that this is due to low prepaid maintenance package that starts from 8k and due to the first in segment 5 year warranty. There are many reasons for the phenomenal success of these brands in India despite of the economic slowdown. They were able to position this in the most appropriate segment and price point as it is a time when the whole buyers are behind the SUVs. Any tech-auto enthusiast would be easily flattered by the specifications and features offered by these two brands. The technical innovation that these vehicles possess would be highly appealing to young buyers. Another remarkable brand that hit the Indian market in 2019 was UNIQLO- a Japanese casual wear brand which is also doing reasonably well.
These three brands are breaking the stereotype of economic slowdown. But the slowdown is evident in the other industry. As it is said better late than never some measures are to be taken like attracting investment, export widening by focus market and product scheme, increasing oil inputs from Iran as they would accept total payments in rupees, sell gold bonds with 5 year maturity which is an exact gold substitute; reduce subsidies, insurance, pensions etc…
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