Look at the bright side: How to take advantage of economic slowdown

India's GDP has declined for the second quarter in a row, from 5.8 per cent in January to March 2019 (which itself was a decline from 6.6 per cent in the previous quarter) to a shocking 5 per cent in the latest quarter (April to June). Despite all the talk revolving around job losses, drop in sales and profits of many major companies and the possibility of India, and the world, heading into a spell of recession, the low figure still caught many by surprise. While government had been keeping a brave face, saying the rate will be around or just a little lower than 6 per cent, many rating agencies had put it around 5.8 to 5.6. But just 5 per cent? That's a shocker.

There is worse news once you dig deeper. Nominal growth at 8 per cent is the lowest India has achieved in almost two decades. That means it is lower than the last two cycles of decline—once during the US mortgage meltdown of 2008, and then again in the 2012-13 period. Two quarters of decline in growth technically means we have deteriorated from a slowdown into a recession, though officially, many would still try not to state the obvious—that things are indeed bad.

Well, not necessarily. Agreed, for the average man out there, it is an era of uncertainty – jobs are on the line as the low levels of economic activity force companies to lay off staff in droves. The auto ancillary industry claims more than three lakh jobs have been cut. This means most people have put off not just big-ticket purchases, but even discretionary spending on lifestyle items they can avoid if need be.

Maybe, that is not too wise. Why? Just as the saying goes, 'one man's misfortune is another man's opportunity,' these desperate times can also have a silver lining, provided you can act decisively. Here are a few areas one can strike gold, if you remain shrewd and keep your ear to the ground.

GOLD: Strike gold with, what else, everybody's favourite precious yellow metal! In times of economic trouble, while value of cash fluctuates or go down, it is in the bullion we trust. No wonder that gold prices are at an all-time high, breaching the 40,000 rupees mark for the first time this week. That makes it too expensive to buy (though some analysts say the price should go up further at least till December), but hey, which Indian does not have some gold stacked away as heirlooms, family jewellery or at least in some bank locker? Turn to them for a safety buffer if you are unfortunate enough to get caught up in this economic whirlwind.

STOCKS: Financial markets are in the doldrums, with the Bombay Sensex going up one day, and down another. But if you have some cash to invest, and patience, this is the time to invest in shares. Consult an expert, and figure out which shares show promise in the long run. But do dabble only if you don't mind waiting for some time to see some er...dividends. Things will get worse before they get better.

REAL ESTATE: While the auto industry has been the crying baby which got the milk (read: first dose of stimulus from the govt had many sops to help the beleaguered auto industry), the real estate segment too is crying out for a saviour. There might be an opportunity hiding in this, too. With developers going bankrupt, customer confidence is at an all-time low when it comes to investing in a flat or a plot. But experts advise there is no need to be alarmist. Genuine big ticket realty majors are getting buyers, as the market is slowly cleansing itself off all the bounty hunter-type ''fly-by-night' operators, thanks to the Real Estate Regulation Act (RERA) which has been in force for the last couple of years, as well as the Supreme Court cracking the whip. With prices rationalising, there could be some good value residential properties up for grabs, if you go for it in a careful, methodical manner.

DEALS: This is the best part, yet. We are entering a festive season where consumer spending is at an all-time low, and corporates are scrambling around for ways to save themselves from further losses. And that can only mean one thing—deals and offers galore! While we can expect more-than-normal level of discounting and offers in the run-up to Diwali this time in anything from clothes to furniture to FMCG and electronic items, the deals promise to be extremely lucrative when it comes to cars and bikes. Reason? Auto industry is not only troubled by a massive decline in sales leading to job and production cuts, they also have to comply with Supreme Court-driven regulations which stipulate that only new vehicles conforming to BS VI emission norms should be sold after April 1. That means unsold inventory needs to be cleared through by hook, and catchy, attractive hooks of price cuts, in the upcoming festive season. Who knows, the consumer reticence disappearing due to bonus payouts and irresistible offers might be just the catalyst the economy needs to kick-start its upward trajectory.