Economic Slowdown In India In 2019 (Model Essay)


In any geographical area, Economic Slowdown is a situation in which economic activities go down. This situation can also be called ‘Economic Recession’; people’s spending capacity goes down in this situation. It may be cyclic or occur after some particular set-back in the economy.

Many a time India has witnessed economic slowdown since Independence. India’s wars with China and Pakistan twice, two major droughts and then giving large subsidies to the poverty-stricken people could never push India into the league of the fast-growing economies of the world until the country decided to go on the track of liberal economy in 1990-91. There took place a lot of economic reforms and the country started being counted in the league of fastest-growing economies. Its socialistic pattern was replaced with the capitalistic one. Again the country witnessed Economic Slowdown in 2008; however, it recovered soon because it was still under some tight economic policy.

This year in 2019, India’s economy has again got a severe hit. The newly appointed Head of the International Monetary Fund (IMF) Kristalia Georgieva said, ‘India’s Economic Growth slowed to 5% in the June quarter, the lowest over six years. The causes of this Slowdown may be manifold:

  • This Economic Slowdown is the result of the Trade War between the US and China which is still going on in a full-fledged way. It has affected the International Market very badly; the demand and supply gap has increased.
  • The Finance Minister of India Smt. Nirmala Sitharaman once said that the economic slowdown in India is there only in the Automobile Sector as this sector is said to have been severely hit as the demand in this sector has witnessed a sharp fall.
  • The IMF Chief said that trade tensions had substantially weakened the Manufacturing and Investment worldwide.
  • The political tension, Brexit has sparked uncertainty in the market. Investment and manufacturing have got severely affected in this way.
  • The mercurial monsoon of this year has sparked uncertainty among the investors.
  • Many plans of the Government are still on the anvil or are not substantially functional lessening enthusiasm among the domestic investors.
  • The prolonged tension with Pakistan has also told upon the economic activities in the country.


  • RBI should cut Interest Rates so as to promote economic activities in the country.
  • There should be healthy coordination between the Government and Banks so that the Government’s schemes may reach out to all factions of the society.
  • Pulling more and more FIIs and FDIs into the country can bring the country out of this slowdown.
  • Flood-stricken farmers should be encouraged by aiding.


The Economic Slowdown at present in India is hit hard more by international issues than by those in India.