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HUMAN RESOURCE MANAGEMENT ASSIGNMENT

SUBMITTED BY: * SHRETIMA BAGRI * B.B.A L.L.B (3RD SEMESTER) * L-193

MAJOR FACTORS WHICH AFFECT INDIAN ECONOMY AT MACRO LEVEL ARE AS FOLLOWS:

* MONSOON:

While the inflation trajectory has been positive in the last few months, there are worries that a poor monsoon may play truant. Indian agriculture and food production is majorly dependent on rainfall as irrigation is still not used everywhere. So a shortage of rainfall could impact food production output. This could have a direct bearing on rural incomes. It could also be potentially inflationary. Monsoon is yet to pick up in various parts of India, sparking fears of a drought. So far, rainfall remains 42.6% below normal, according to a report by Kotak Securities, a Mumbai-based brokerage. This has lead to deficiency in reservoir and water-basin levels by as much as 34%, the report said.

* TECHNOLOGICAL FACTORS:

Technology significantly influences product development and also introduces fresh cost-cutting processes. India is served with both 3G and 4G technology which has facilitated several of their technological projects. Furthermore, the country also possesses one of the strongest IT sectors in the world, promoting constant IT development, software upgrades and other technological advancements. Recently, India has also attempted to launch their satellites into space

* INTEREST RATES:

The deficient monsoon could lead to a rise in inflation. “Signs of a deficient monsoon and weak acreage have increased the risks of a repeat of the 2009 phase of high food inflation,” the brokerage said. This could force the RBI to continue its high interest rate regime. Sustained high interest rates are bad for economic growth. It increases cost of borrowing. This impacts corporate profitability and slows economic growth. The market generally cheers

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