NEWS ARTICLE 1

NAME: BIBHA PANDEY

STREAM: MPM

ROLL NUMBER: 08

TITLE OF ARTICLE: INDIA S ECONOMIC GROWTH SLOWS AS RISING PRICE HURTS

NAME OF AUTHOR: WILLIAM WOODS

NAME OF MAGZINE: THE HINDU

SUMMARY OF THE ARTICLE

In the quarter of this year compared to last of same period country s economy is growing only at 7.8%. Last year economy grew at 8.5% lower than 8.6% which government forecasted. India is one of the fastest-growing economies in the world, but has been hit hard by rising consumer prices. High inflation and a gradual increase in interest has slowed domestic demand. The central bank has increased interest rates nine times in 15 months. The last rise on 3 May boosted the benchmark interest rate to 7.25%. Government is only rising the interest rates to control the inflation, but this slowing down the growth rate. However, analysts warned that though a slowdown in growth had been broadly expected, continued loss of momentum would have an adverse effect on the economy. The Indian government had set an economic growth target of 9% for this fiscal year. In May Finance Minister Pranab Mukherjee admitted that India could miss that goal because of high inflation and rising commodity prices.

LESSON LEARNT FROM ARTICLE

From this article we can see that finance minister in the Budget said that this year country will grow at 9% growth rate but instead of achieving this growth rate ,earlier growth rate is declining which came to 7.6% compared to last year growth rate.

So there no proper planning done and all the basic functions of management planning,organising,directing,controlling were not considered so growth rate is not achieved. And when we see declining growth rate then it shows lack of controlling.