With the US and Europe in deep recession, it is easy to forget that India is not the only country facing a global downturn.
The Indian economy is also being hit by a slowdown that is expected to hit India’s gross domestic product (GDP) by as much as 7.6 per cent in the second half of next year, according to the Reserve Bank of India.
In recent years, many of India’s biggest companies have gone public and lost money on their public shareholdings.
In 2018, Tata Consultancy Services (TCS) was the biggest casualty of the global financial crisis.
In February 2019, its stock crashed as much at $8.5 billion as at the end of March, triggering the worst stock market decline since the global crash of 2008.
In the same month, Tata Sons, India’s largest steelmaker, went private, taking with it the company’s estimated $1.7 billion in annual revenue.
A slew of companies have also fallen victim to the global downturn: In January 2019, telecoms giant Vodafone lost $1 billion.
In June, Tata Steel and Power also suffered losses.
The country’s biggest bank, HDFC, also lost money.
Last year, India lost $835 million, or more than $20 billion, in a single day.
At the same time, the economy is expected see an economic recovery of 5.6-7.6 percent in the year ending March 2020, according the National Sample Survey Office.
The country’s government has also been on the front lines of addressing the slowdown, announcing a raft of measures in the first two months of this year.
The government has set a target of an economic growth rate of 7.5 per cent by 2020, with the government expecting that this target will be met.
The government has already started a new round of fiscal tightening, raising the minimum wage from $15 per hour to $20 per hour, and imposing a 15 per cent tax on corporate profits over Rs 3 lakh.
These measures will take effect in March 2020.
But the government has been less visible in terms of how it is responding to the slowdown.
In December, the government announced that it would allow private companies to keep more of their profits in India.
This would reduce the incentive for firms to relocate to India.
But it has also made no effort to stimulate the economy.
It has failed to implement measures to boost the domestic labour force, with only a modest jump in the number of jobs available, according a report from the Centre for Policy Research.
It also failed to provide any measures to encourage businesses to invest in India, a sector where there are some signs of a rebound.
India’s biggest trade partner, China, has been the biggest beneficiary of the downturn.
Over the last two years, China has witnessed a global slowdown that has seen its manufacturing sector shrink by almost half.
The decline has hit exports of China’s manufactured goods and services.
The trade deficit between India and China was almost $1 trillion last year.
India has also suffered the loss of several companies, including the telecoms and pharmaceuticals sector.
As many as 20 firms in the Indian phone and internet industry have closed down, according TOI data.
In January, Tata, India the world’s largest mobile phone operator, announced that its profits were down $5 billion in the fiscal year that ended in March.
Tata has been one of the biggest beneficiaries of the slowdown in India’s economy.
In May, the company agreed to pay a $1,000 penalty for failing to meet the minimum income tax obligation.
It said that the penalty was the first step towards reducing its tax burden.
But as the tax burden increases, the chances of the company avoiding the tax increase and making the payment to the government are very slim.
On Tuesday, the state-owned telecom company Bharti Airtel, one of India`s largest telecom operators, announced the closure of all of its 700m rural lines in Maharashtra, Andhra Pradesh and Telangana, including some of the most important routes to the country’s major cities.
It is the latest in a series of cuts by the telecom companies, which have faced increasing pressure from the government.
The slowdown in China has also hit India.
As a result, the country`s trade deficit with China is now nearly $1-trillion.
The current account deficit with the country is also $5.6 billion.