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Aussies send message by demolishing india and sending jobs there
With the world's biggest economy in shambles, India is trying to turn its attention elsewhere, but is it?
The Indian economy lost an impressive 17 percent of its value in the third quarter and lost a staggering 4 percent of its value in the first quarter, according to the BSE Sensex.
A total of $11.8 billion worth of foreign direct investment has flowed into the country, according to the government's latest data, and the current account deficit will be in excess of $70 billion for two straight quarters.
But just how can India's growth rate stand this, particularly in light of India's vast economy and shrinking manufacturing sectors?
Here's what's happening:
The first half of 2016 has been extremely bad for India's economy, with its stock market index dropping 1.4 percent during the year, its manufacturing sector registering its weakest annual growth in its history, and the global economy slowing.
India's currency has weakened sharply and with it exports.
"India's economy is not immune to the effects of economic weakness," said Dr. Prateek Srinivasan of the University of Chicago.
There's a number of factors that can hamper growth for India, including its slowing consumption, poor infrastructure investment, a poor infrastructure outlook and a large trade deficit that can keep the country in economic quagmire for years.
Even though this is the weakest growth for a decade, India's new economy has shown signs of being one of the stronger new economies in sub-Saharan Africa, and as a result the country's growth rate is expected to increase over the next four years.
India's economy has continued to get better through this recovery period, and as a result the recent slowdown can be attributed to poor governance issues, especially the way the government has handled the capital account.
While India's fiscal and economic growth slowed during 2015, it is expected to accelerate at least once the tax system for individuals (through indirect tax) is reformed in coming years.
These tax changes in particular have helped the government generate a significant amount of growth and jobs in the country.
India's GDP growth was 5.5 percent for the first half of 2016, up from 4.8 percent in the first quarter of 2015. The government is expecting its growth to increase by 4.5 percent in the first quarter of 2017.
On the other hand, India's manufacturing output, which is the largest component of the economy, has slowed this year as well, as companies have begun to take jobs abroad and fewer factories are opening up.
India's economy is currently worth around $17 trillion, and is projected to grow to $17.1 trillio
Hope for local govt to help subsidise show power to generate electricity from solar panels and wind turbines.
Mahaikarnidhi (M), Aam Aadmi Party president candidate, says: "The government should use the money it received to start a solar power farm in the state. It must come with a clear commitment from the ministry of power to start supplying electricity to the region. The power plants must be made within a set period of time. This should come with a guarantee that solar panels are fitted on all the power plants in the state. Once these are operational, more power plants in Delhi will need to be added in Rajasthan".
Rajasthan has the third highest total solar capacity with 2.62 GW capacity of solar power and 1.5 GW of wind. The Rajasthan Institute of Renewable Energy has declared that it will produce 30-40 GW of solar energy, 1.2 GW of wind and 500 megawatts of thermal power. The company plans to set up 500 MW of energy generation units within six years from now.
Aapriya Chatterjee, vice-president of MHAI in the state adds: "The state government will need Rs 5 crore a year to cover the costs for the solar panels for the next five years. But, from our standpoint, the solar panels have to be installed in the national market. There are some farmers in the state who have already paid the bill."
Nivan Kumar, president of MHAI in Rajasthan says: "The central government's investment for renewables would help in bringing down costs, bring jobs and generate the jobs to come back to the state. It's a game changer for the state, which is not doing its job and putting out promises at such low rate of development. The government should consider the impact on the region. And in the near future, we will start a project of this kind."