Knock on effect of rural demand.

"India's GDP grew 5.8% in the quarter ending March 2019, the lowest figure since the 5.3% recorded in the quarter ending March 2014," wrote R Kishore. The Ministry of Finance explained the falling growth rate as due to "declining growth in private consumption, slow increase in fixed investment and muted exports". "The real effective exchange rate has appreciated in Q4 of 2018-19 and could pose challenges to the revival of exports in the near future," it said. When the rupee is strong compared to other currencies our goods become more expensive compared to our competitors. According to the World Bank, our economy is too dependent on domestic demand and not enough on exports. "I think, is the understanding that you need export-led growth because that's where you increase productivity when you compete in international markets; that's where you gain knowledge by interacting with competitors and with customers abroad," said Hans Timmer. Too much hard work, it is much easier to sell shoddy stuff to Indians. "India, Timmer said, is exporting 10 percent of its GDP. What they should have exported is 30% percent..." "India cannot survive without exports. In 2017-18, exports of goods and services contributed about 12% of India's GDP," said CEO of NITI Aayog Amitabh Kant. "In 2017, India ranked 146th out of 190 economies on the World Bank's 'trading across borders' component of doing business, which measures the time and cost (excluding tariffs) associated with documentary and border compliance and domestic transport procedures for trading goods." "No nation has sustained growth rates of 9-10% for two decades or more without succeeding in global markets. China's share in global merchandise exports rose from 2% in 1991 to 12.4% in 2012," wrote Prof A Panagariya. If India cannot increase exports it can increase economic growth by allowing foreign companies into multi-brand retail, which will lead to a jump in foreign investment, wrote T Worstall. Food is a larger portion of our Consumer Price Index (CPI) than the US but there is little value addition in food. "If consumption demand, especially for automobiles rather than food, is slowing then it is a double whammy for GDP growth. This is because it affects consumption demand in the current period and investment demand in the future." A survey by the Reserve Bank (RBI) showed a marked drop off in consumer demand for non-essential goods and services. If the government stimulates growth in agriculture, demand for industrial goods will also increase, wrote Prof A Gulati. "China, for example, registered an agri-GDP growth of 4.5 percent per annum during 1978-2016, a very long period indeed." The Minister of Agriculture in the previous government supported multi-brand retail because ti would help agriculture, but this government will not allow multi-brand retail because it will lose votes of small traders. Can be done. But, votes more important than economy.