New into the workforce, I am looking for a job in the field of the business analyst. Yesterday I went for an interview in a start-up (Just a newbie like me). I was amazed by the interview process. I appeared for online test, fairly passed out. I was given to write an essay on the topic- Top 5 challenges before the Indian economy. I was like “WOW”,
After appearing for 5 interviews in accounts and finance field, this was one that made me happy. I was like, now I got the opportunity to use my civils knowledge. I wrote the essay, but it was highly unstructured, punctured with loads of facts and figures. I wondered after submitting my essay that what I wrote was not the exact explanation of India’s challenge. Well, I am selected for Face to face interview, and eagerly waiting for the final round.
Well, I have no intention to elaborate on what I did. I am here to find out what are those top 5 challenges that haunt our country today. As per Newspaper, Media and Journal recently INDIAN ECONOMY is HAUNTED by the ghost of –
· FINANCIAL SECTOR IN DISTRESS: How? CorporateSector stressed asset issues further complicated by Bankruptcy and Fraud cases. The recent case of IL&FS crisis and JET AIRWAYS shut down is a hot topic to discuss, how the economy is performing.
Nobody is ignorant of the fact of Mounting NPA’s account in Public Sector Bank, to be precise as RBI report it amounts to 9.43 lakh crore. I hope the merger of banks and recapitalisation of banks be a panacea.
If quoted in D. Subbarao words, such mergers increase the moral risk of “TOO BIG TO FAIL “syndrome. Bank merger announcement is a needless distraction.
· MACRO FACTOR: this includes more recited holy words, often seen in the news and global standard rating agency projection.GDP, which is almost 6 years low now. Real GDP is 5% which has declined from 6.7%. Another, gorgeous terms that we often encounter is WIDENING FISCAL DEFICIT. But, what adds oil to fire is widening Revenue Deficit. This is concerning because borrowing to meet current expenditures is never sustainable. So far, our effort to boost export is still not enough. Consumption led growth is declining and weakening demand has painted another complex picture of SLOWDOWN in the economy. Well, Government Fiscal Stimulus and RBI rate cut, linking of Repo rate with LoansRate w.e.f 1st October 2019 may provide short-term relief and boost investment for a while. Oh, this highlights the next holy word in the list “INVESTMENT”, what a beautiful word!!!.... INVESTMENT by Private sector is not at par. So far the investment is more driven by the PUBLIC SECTOR. Policies have to be drafted in a way to increase shares of PRIVATE INVESTMENT. This is where real growth has to come from, if we want to accomplish the dream to become a $5 trillion economy (right now we are $2.6 trillion economy). Structural reform is the need of the hour.
· DISTRESSED FARM SECTOR AND POOR FARMER:
Everyone is aware of the critical conditions of farmers. No newspaper or media is devoid of news of farmer SUICIDE. Every day I find the news of farmer cries and dies. Sometimes their situation is complicated by the wrath of climate change, monsoon. Sometimes they don’t get enough MSP. Though MS Swaminathan has given the formula for MSPin 2005, so far govt has not accepted the recommendation. Well, recent govt. efforts are to double farmers Income by 2022. Finger crossed because I don’t see much improvement in farmer’s situation.
· UNSTABLE GEOPOLITICAL SITUATION:
We can also say unstable US govt policies of sanction on IRAN, RUSSIA and Trade war with CHINA is deepening global crisis. US FED rate cutting and its approach toward AFGHAN PEACE TALK, NORTH KOREA TALKS are recent turbulence. US fed rate cut has an impact on investment in India, especially forex. Another issue is BREXIT, how UK going to exit from EU, when JOHNSON BORRIS effort to suspend parliament for two weeks, got thrashed by UK Supreme Court. As per latest news, BRITAIN is heading to NO-DEAL exit, this is definitely going to affect all economies. Let’s talk about turbulent Middle east, always in trouble. ISREAL AND PALESTINE conflicts and its two-nation theory is in jeopardy. SAUDI- IRAN conflict for domination in the Gulf region, has recently deepened by the incident of DRONE attack on SAUDI’s OIL COMPANY ARAMCO. Which lead to the sudden surge in GLOBAL OIL PRICE and again impacted the investment in India and further depreciating INDIAN RUPEES (Import become dearer, as a result, current account deficit widen, due to big bills).
We can easily see how GLOBALISED we are.
· Well, what could be the fifth challenge forINDIA? Any IDEA?
I have an idea and I can tell, this challenge is mentioned in the very first sentences of the article. Let me quote-“New into the workforce, I am looking for a job in the field of the business analyst”. Hey, guys, I am Unemployed. And that’s true, the last but not least, the challenge is “UNEMPLOYMENT”. What can I say, we all understand it? No explanation needed here.
Do you agree? If not, then let me know what’s INDIA’S TOP 5 CHALLENGES in your opinion?
Do share your views?
India is our country; we should discuss its challenges.
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