WORLD'S LARGEST ECONOMY GROUNDS TO A EXCRUCIATING HALT

Indian economy, the fifth largest economy, with more than a billion-consumer base, after sputtering, faltering in recent years, is now grounding to an excruciating halt.

Both the demand and supply side is adversly affected. To say that it is destroyed, would not be an understatement. previous policy decisions have done nothing to ease the fast deteriorating economic situation with almost every aspect and paramenter of economic growth measurement experiencing unprecedented stress. India's banking sector, for the first time, is facing a major credibility crisis where account holders now constantly worry about the safety of their hard earned money.

A SELF INFLECTED WOUND TO THE INDIAN ECONOMY

The abrupt Demonetisation of all ₹500 and ₹1,000 banknotes, where the Modi government sucked out a whopping 86.4 per cent of the total money in circulation hit India hard.

As a stunned nation unwillingly suspended their daily struggle to earn livelihood, and lined outside financial institutions to withdraw their hard-earned money, more than a hundred people lost their lives as a result of such an unprecedented act.

It is now a thoroughly researched, data backed, a "20/20 hindsight vision'ed" well-established fact, that Demonetisation adversely impacted India's GDP. It led to widespread job losses across all strata of economy. It led to widespread closures of small and medium enterprises across India.

While the after effects of Demonetisation was still being felt till a year later, a self congratulating PM Modi inflicted yet another body blow to an already reeling economy.

DISRUPTING THE SUPPLY CHAIN

PM Modi, who is on record opposing the implementation of GST during Congress led government, did an about turn and implemented GST in much more chaotic and unplanned manner, than Demonetisation. This adversely impacted flow of goods across India and disrupted the supply chain as well as blocking businesses well needed fund accessibility with tighter credit conditons.

Most of Europe is predicted to clock a negative growth. India, with more than a billion mouths to feed, is predicted to have a Zero percent Gross Domestic Product (GDP).

Barclays, while researching the impact of COVID-19 on emerging markets forecasted that India's calendar year 2020 GDP would be 0.0 percent, down from the 2.5 percent forecasted earlier.

Drastic fall in consumption, exports and investments and dearth of jobs is pushing world's fifth largest economy to precipice. India commands a large consumer base, as well as a young work force, where the economy of scale allures multinationals. A stagnant growth in India is worse for the global economy than many negative, contracting economies.

THE NEETs OF INDIA

With the world's largest youth population, the advantage gets lost a bit, with thirty percent and rapidly growing numbers of NEETs (not in employment, education or training).

The unorganized sector of India's economy has been hit the worst. More than 90 % of India's workforce is in the unorganised segment. This sector is now facing its worst challenge with credit not easily available and now consumers and work opportunities under restriction due to COVID-19 measures.

Informal manufacturing and agriculture sector rely on informal sources of finances. Albeit at higher interest rates. However, with this informal source of financing facing a downward pressure, the other associated arms of economy, that engines the Indian economy has now grounded to a halt.

The impact of this important stagnant market is being felt across the globe. The rising consumer base has now doubled down in its spending and showrooms across India are now stacked with unsold electronic and automobiles.

RISING COVID-19 CASES