Taming the Global Economic Crisis: The need of the hour

The whole World is going through economic crisis and every nation is suffering from the fierceness of slowdown of World economy. The Global economic crisis has a serious impact on the economy of every nation including India and it has become a major issue of Concern. India is still a developing economy and such crisis and slowdown of economy can lead to severe economic issues. According to the industrialists, the present condition of the World economy is not favourable for India’s growth and development and it is important that the present economic policies needs to be reformed in order to tackle the unfavorable conditions that are forthcoming due to the present Global economic crisis. It is important to modify the approach while determining the scale which will specify the economic condition of India.

It is immensely important to understand the fact that the stock market and growing industrialization does not indicate the economic condition of the nation and this is where we tend to go wrong. People generally think that the rise and decline in the stock market indicates the growth of economy but it is essential to analyze several other factors. Most of the people who are employed works in unorganized sectors and the rise and decline of the stock market do not have any kind of impact on their lives. We generally judge the economy of India by witnessing the growing industrialization of the major cities but the conditions of the rural areas still remain unchanged. It is vital to understand that the economic condition of a country is decided seeing the overall development of the nation, which includes both the rural areas as well as the urban areas but cannot be judged with the development of the urban areas. It is important to tame the global crisis, so that India’s economy does not suffer from the adverse effect of it. This can be done by taking the following measures.

  • Seeing the present economic condition of India, it is difficult to generate jobs for so many unemployed people, government should initiate programs to help the unemployed to start their own business by providing loans at a minimal interest. This will not only help the people to become entrepreneurs but will also help the Government to deal with the ongoing economic crisis. However, it is important that Government implements strict laws for providing loans to make sure that the loan is being repaid on time.
  • Government should concentrate on improving the basic infrastructure of economy of the country rather than providing financial liberation to the industries. By improving the infrastructure of the country, it will open up more employment opportunities for people as well as encourage them to start their own business.
  • With the growth of the Information Technology sector, many new educational institutes have come up offering courses on management, engineering and IT but the huge growth of these institutes have led to a massive increase in the number of unemployed. It is seen that most of them end up with jobs in the BPO sector and their skills remain underutilized. Government should keep a check on these institutes and put an end to the mushrooming of it rather utilizing the skills of the people in a better way.
  • Government should no longer depend solely on the IT sector or the telecom sector for revenue generation. Instead, Government should come up with some spanking ways for revenue generation and concentrate on developing the other sectors and improve the infrastructure of the nation.
  • India being rich in human resources, it is essential that the human resource of our nation is utilized in a better way. For this, it is important to recognize the sectors where demand of goods and services are more and accordingly increase that sector. This will not only help in the economic growth of the country but will also help in effective and efficient utilization of manpower, reducing the number of unemployed from India.
  • It is well-known that unless the primary sector of any nation’s economy is in stable condition, the remaining two sectors- secondary and tertiary sectors cannot continue to exist. Seeing the increasing crave for the service sector, it is important to concentrate on improving the sectors like manufacturing and agriculture as they are as well capable of contributing immensely to the GDP of India. Government should take steps to magnetize people towards the other sectors and reduce the crave for service sector. This can be done by providing long-term and stable employment opportunities in these sectors.

The present financial crisis through which the whole world is going thorough can be tamed only giving importance on reforming the economic policies and making it more comprehensive, sustainable and capable of handling the long persisting issues of India. In order to have less impact of the global economic crisis in India both Government and corporate sector should come up together in dealing with the present economic crisis, if not tamed on time will lead to long-term adverse effect on India’s economy.

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