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GDP growth touches 6 year low

Economy in ICU: India’s GDP growth further dips to 4.5% in July-Sep.

Today the economy is in tatters but government-majoritarian regime is silent on this matter. Many Investors have lost faith in the Indian economy. The condition of this growth rate is a “artificial tragedy” and the plans to shift “New India” into a majoritarian nation has completely crippled the same. As per the recent report on Nov 29, During the six-month period from April to Sep 2019, the Indian economy grew 4.8% as against 7.5% in the same period a year ago.

While the RBI had lowered the GDP growth projection for 2019-20 to 6.1% from the earlier forecast at 6.9%. Thus, the leading regime is in denial mode, data indicating uninterruptedly into the ‘public domain’ show that sector after sector is staring at a seriously challenging circumstances. While many Economic experts remarked that, GDP growth is at a six-year low and unemployment is at a 45-year-high.

According to the official data released on Nov 29, India’s economic growth slipped further to hit an over 6 year low of 4.5% in July-Sep. Notably, The previous low was recorded at 4.3% in the January-March period of 2012-13. The GDP growth was registered at 7% in the corresponding quarter of 2018-19. However, China’s economic growth was 6% in July-Sep 2019, which was the weakest expansion in over 27 years.

As per the, World Bank (WB) on Oct 13, After a broad-based deceleration in the initial quarters of this fiscal year, India’s growth rate is projected to fall to 6%. In 2018-19, the growth rate of the Nation stood at 6.9%. Bangladesh and Nepal are estimated to grow faster than India in 2019, which mark that overall growth in South Asia is projected to slow down this fiscal in line with a global downward trends.

Meanwhile, investors are likely to shift focus for quality mid & small caps, which are likely to out-perform in the near term,” Vinod Nair, head of Research at Geojit Financial Services, asserted in Mumbai. Yes Bank was the top loser in the Sensex pack, shedding 2.50%, followed by HUL that fell 2.37%, M&M 2.12 per cent, SBI 2.03%, Tata Motors 2.03% and Vedanta 1.97%. On the other hand, Bharti Airtel, HDFC Bank and NTPC ended with gains, PTI news agency reported.

Thus, The government yet to show signs that it has come to grips with what ails the economy. The menace is rooted mainly in the leading government inexplicable reluctance, to develop its own coherent set of thoughts about the Development (Vikas). Earlier on Nov 29, benchmark indices Sensex and Nifty retreated from record highs as investors scrambled to book profits in recent high-flying stocks amid fears that India’s second quarter GDP rates may slip further.

On a weekly basis, the Sensex advanced 434.40 points or 1.07% while the Nifty rose 141.65 points or 1.18%. Investor sentiment during the week was mainly driven by positive news about progress of US-China trade talks and he government’s continued measures to boost consumer demand and economic growth. “Profit booking ahead of economic data and selling pressure in Asian peers due to risk of retaliation from China add volatility in the market. The recent rally has lifted the market to supreme valuation which may limit the headroom of key indices to perform well in the short-term, PTI news agency reported.

Despite all of this, India is a large developing economy, contraction is a rarity. The last instance of negative growth for India was in 1979. A growth recession is more commonplace where the economy continues to grow but at a slower pace than usual for a sustained period, what India has been facing nowadays. India was expected to gradually recover in 2021 and 7.2% in 2022 as it assumed that the monetary stance would remain accommodative, given benign price dynamics. Many Structural shifts over the long run can be achieved through tapping into the health and education sectors that long for quality improvements.

Author: Trilok Singh, Currently Studies Masters in Mass Communication & Journalism at International School of Media and Entertainment Studies, News 24 Campus. MA in Political Science, Kirori Mal College, University of Delhi.

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