Investment – For sustaining high growth, the economy need to continuously add to its “production capacity” through new investment flows. • Productive investment is money that is spent for – building roads, ports (and other public infrastructure), factories, and workforce quality enhancement. • Currently, India is seeing a sharp decline in the rate of investments in recent years which has come down from 34% of GDP in 2014 to 30% currently. • More strikingly, the current investment rate is the lowest in about 15 years, which makes it incompatible with the aspired high growth rate of 7 – 8%.
Industrial production is on decline due to the demonetisation effect. Now it is hovering at an abysmal rate of 2%
Growth Of NPA’s: Bank’s health plays a significant role in an economy. But rising problem of Balance sheet syndrome couple with NPA’s is huge concern. As a result of rise in NPA’s rate of lending has come down. The pace of lending has come down from 2014. It is now growing at a rate of 6% only.
Growing rate of combined fiscal deficit of state and centre is a worrisome situation. India’s sovereign debt is near about 70%. Combined FD = 6.5%
Rise of crude oil prices: There is sustained increase in the prices of the crude oil which has bearing on our import bill. 80% of our oil demand is met by imports. The extraneous factors play a huge role i.e. factors beyond our hands.
Consistent Farmer distress.
BPCS Notes brings Prelims and Mains programs for BPCS Prelims and BPCS Mains Exam preparation. Various Programs initiated by BPCS Notes are as follows:-