The Finance minister, Pranabh Mukhrjee’s worry regarding slow downing economic scale is going to be realty, because expansion of inflation rate, global uncertainties and slow fall in stock markets. All such are the threats for economic slowdown and as resulting of jobs cut.

However, from the August month of this year, the flow of India’s industrial economy is unbalanced. It was fall 1.9% in September and expected to be fallen to minus 5.1% in October.

Such slowdown is come from the biggest fall in the capital goods as well as in the manufacturing sector and mining. The capital goods growth is at minus 25% while manufacturing activity has declined to minus 6% from 2.1% a month ago.

In fact, Job losses warning has also given by the Confederation of Indian Industry (CII) and said, “A lack of investments can act as a drag on growth and that a continued decline in the mining sector can have consequences on livelihoods. Economic experts say the manufacturing sector is likely to see job losses and warned that inflation will continue to stay high even as the stock markets may continue to be in bear grip.”

Regarding it, C Rangarajan, the Prime Minister’s Economic Advisory Council Advisor hoped, “The GDP growth will still be between 7-7.5%, it looks hard to achieve due to lack of corrective measures on the part of the UPA Government.”

While the Reserve Bank has hiked interest rates 13 times since March, 2010, which have led to an increase in the cost of borrowing.

Beside this, some leading industrialists has alleged that the Central Government has been suffering from policy hurdles.

Moreover, the Opposition party has been taking opportunity of this and forced the Government to hold back its decision on allowing FDI in retail sector.