Is India facing Recession? Decline in Auto Sector

Recession and auto sector

Recession, since the starting of 2019 India GDP is not in very good condition. According to the data released by the government of India is growing at a rate of 5.8 % which is way less than its previous years. India has also lost the fastest growing tag and has slipped to the 7th position lagging behind the United Kingdom and France.

But the main factor is the decline in the auto sector is Non-Banking Financial Companies (NBFC) lacking in supplying cash. NBFC facing a cash crunch and people are finding it difficult to avail loans from them. Due to unavailability of loan and slowing down of GDP people are postponing their decision of buying cars. India leading automobile manufacturer Maruti Suzuki has revealed a sharp decline in the sale of 36.2 per cent in July. Moreover, not only Maruti Suzuki but also many car making companies facing the same decline in their cars sale.

And to save themselves from this decline companies are taking untoward measures by cutting car production and firing workers from their jobs. That somehow is making a negative impact on GDP. Already India facing its highest-ever unemployment rate in 45 years as it has reached to 6.6 %. Now that if people will lose jobs they will directly or indirectly increases the unemployment rate.

All these factors are co-related and contributed in GDP, in that case, we can say that India most probably is going to face recession sooner or later.

Facing worst growth recession

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