Current economics issues

Economic articles 2018

Production rose but farm-gate prices have declined. Due to disinflation in farm-gate prices, they are selling their farm produce cheaper but are buying other things at higher prices. For the Democratic party, the challenge will be to decide whether it caters to the center of the party, as exemplified by former Vice President Joe Biden, or more progressive or left-leaning candidates, like Bernie Sanders and Elizabeth Warren. Over both the short and long term, India has a lot to worry. Pulapre Balakrishnan, professor of economics, Ashoka University, says recapitalisation without governance reforms amount to little. GDP growth has been slowing. As we look ahead to the new year, concerns about trade and more will weigh on financial markets, carrying some financial risk and opportunities for individuals. Overhauling the Agricultural Produce Marketing Act, allowing direct buying from farmer producer organisations, restructuring the MSP policy and opening up market infrastructure — like warehousing, processing and logistics — are critical.

You may also like. A consistent and thought-through export policy factoring in perishables is important. Inthe NDA government aspired to double farm income.

Current economics issues

Farmers are reeling under inflation asymmetry. Over both the short and long term, India has a lot to worry.

economic current event articles for students 2019

Ultimately, all of that feeds back to consumers and workers. Most policy initiatives — from minimum support price MSP and fertiliser subsidy to farm loan waivers — have been flawed, geographically uneven and mostly band-aid solutions.

Enough taxpayer money has been used to recapitalise them. Finally, agriculture supports far too many people.

Current economic issues 2019

To be sure, most of these issues have been building up for a while, even though they have intensified in the recent past. That means some borrowing rates could be close to their peaks. A report by Azim Premji University says 50 lakh people lost jobs in due to policy shocks like demonetisation and GST. Pulapre Balakrishnan, professor of economics, Ashoka University, says recapitalisation without governance reforms amount to little. And, while uncertainty is always with us, there are times like the present when we have a heightened sense of it. Between and , the number of farms have doubled to million, even as average farm size has more than halved to 1. Despite last year seeing the highest MSP since and loan waivers worth Rs 1,90, cr between April and early , farmer protests and suicides have surged. The government must prioritise and incentivise manufacturing and remove policy bottlenecks while helping them become globally competitive. Farmers are reeling under inflation asymmetry. But the end is thought to be possibly at hand next year. Finally, agriculture supports far too many people. For workers, or those aspiring to work, this might be about as good as it gets for the job market. One note of caution: Recessions are notoriously difficult to predict.
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Top five economic issues that the new government must prioritise