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"Ruined India": Priyanka Gandhi Vadra Hits Out At BJP Over Economy

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A massive contraction in manufacturing, agriculture and mining pulled India's GDP growth rate down to 4.5%.

Economic growth has now fallen for six consecutive quarters, a slide that can be partially attributed to the recent weakness of India's factories. The agency had revised to 6.1% its GDP growth forecast for the 2015 financial year, only a month ago, "said the rating agency in a statement".

- Indranil Pan, chief economist at IDFC First Bank, estimates that GDP growth for the second quarter of the fiscal year 2013 could be 4.5%. "It is also pertinent that the government continues to spend in order to avoid conditions of tight liquidity that were prevalent in the early part of the year".

The data indicates that the economic growth started slowing gradually since demonetisation in November 2016, though the GDP in Q2FY17 was 8.87 per cent at that point.

Former prime minister Manmohan Singh, on Friday, pointed out that with the clear majority in Lok Sabha and low crude oil prices, Prime Minister Narendra Modi had the "once in a generation" opportunity to catapult India onto the next level of growth, and urged Modi to set aside deep-rooted distrust and take India on a high growth trajectory. This is clearly unacceptable.

India needs to grow at around 8 percent to create enough jobs for the millions of young people joining the labour force each year, yet many economists see the current slowdown continuing for another year or two, underlining the case for urgent reforms. A crisis among shadow banks - a key source of funding for small businesses and consumers - weak rural spending and a global slowdown have since conspired to bring down growth steadily.

New Delhi, Nov 29 (SocialNews.XYZ) Despite a slew of government measures aimed at reviving growth, the Indian economy continued its downward trajectory.

The State Bank of India, the country's largest public sector bank, and Japanese brokerage Nomura had predicted July-September growth to be 4.2%, while macroeconomic research company Capital Economics and the Fitch Group's local arm India Ratings and Research estimated it at 4.7%.

The release of another dataset deepened the gloom.

The official numbers released by the government showed that eight core industries' output in October declined by 5.8%. Another reason was the grim industrial output data, which contracted 0.4% during the quarter against 3% expansion in the preceding three months. It was 6.9 per cent in the same quarter of the last financial year. Economists said that with persistently tight domestic credit and weak corporate profits, India's recovery could be delayed and the pick-up would remain below potential.

"Going forward, we believe the fiscal policy will need to play a dominant role in supporting overall growth". Hence, fiscal policy will have to do the heavy-lifting to boost growth.

But the clamour for another rate cut is expected to grow to a crescendo with the RBI policymakers due to meet from December 3 to 5 in Mumbai.

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