Economics

What is Economic Slump?

Not a day goes by without one reading headlines like the ‘falling rupee’, ‘worst economic slump in India’, ‘wrath of rupee hitting the masses’, ‘rupee 69 against dollar: lowest in 18 years’, to name a few, regarding the financial conditions in our country. We are all aware of the falling rupee, even if we don’t know what it actually means or understand the measures taken by RBI to elevate the ‘slump’.

However, if we analyse the spending spree in various parts of India, by virtue of a plethora of festivals being celebrated, an altogether different picture is portrayed.  It is one which includes festival extravaganza, flourishing markets and grandeur and seems to be in a country which is not at all suffering from a bad economy.

Even though economists are saying that this festive season, sales will go down, yet it makes it a tad difficult  for one to believe it while reading articles informing ‘grand extravaganza’ taking place where in a single event 200 idols, some over 28 ft tall, were immersed on the final day of the Ganesh festival. Not to mention coming across staggering statistics like that of Bengal’s Durga Puja industry supposedly touching 40000crore in the year 2015 as per a paper by Assocham, as its expected growth this year alone is 35% despite the ‘slump’.

All this and more, really makes one ponder what actually is going on in our country. But worry not people, an apt answer is ready for this puzzle and that is-“it’s India”. Ours is a nation of devout believers. Perhaps, spending more money on festivals during slump period makes more sense for us “believers” due to our convoluted logic  of ‘hoping’ that maybe the Gods will be pleased and lift all our problems along with the value of the rupee.

As far as the problem of inflation and its solution is concerned, haven’t we proved enough times already that we are inherently incapable of solving a problem unless it is glaring us in the face? Not to mention that god forbid we lose the title of being the best procrastinators(for those holding different opinions-just Google the number of cases pending in India, the complicated process and multiple visits involved in obtaining a simple voter ID card or just watch an episode of the old daily soap Office-Office-and you will get my point).

But all is not lost, with RBI having a new Governor with the name of Mr.Raghuram Rajan, a prominent former IMF chief economist who famously predicted the global financial crisis, there is still hope and with him already taking strong measures, that hope grows stronger. This is a relief, seeing that the common masses, which, on one side create such a hue and cry over the soaring prices of onions and petrol, spend extravagantly in the festive season, as if innocently asking “What is Economic Slump?”

About the Author

sonakshiSonakshi Faujdar

Sonakshi is a first year law student at Symbiosis Law School, Pune. She completed her schooling from CJM Convent St. Anthony’s Junior College, Agra, where she was the Head Girl of the student council. Her interests include reading, writing and debating and she enjoys good music, appreciates humour, thrives on sarcasm and generally annoys the hell out of her friends (that last bit is unintentional, well most times anyway). Currently, she is experiencing and surviving through the first year of law school and is extremely excited about the opportunity to share her views on the platform provided by the Alexis Foundation.

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