Economic Crisis: Gross Domestic Product Growth Falls To 4.5% In Q2 Of 2019-20
Mumbai: GDP continued its downward spiral for the seventh consecutive quarter, falling to 4.5 percent in the second quarter (July-September) of 2019-20. It is down 0.5 percent compared to the previous quarter. This is a decline of 2.6 percent compared to the second quarter of 2018-19. GDP growth was 7.1 percent in the second quarter of last year.
The GDP growth seen in the previous quarter was the slowest in six years. In the last quarter (January-March) of 2012-13, the previous low was recorded at 4.3 percent.
GDP numbers were released with data from eight core infrastructure industries, which saw a 5.8 percent drop in output in October. Six of the eight core industries saw a contraction in production in October. The biggest drop was in coal, a 17.6 percent decrease.
India was the fastest-growing economy in the world in 2016, with a quarterly growth rate of 9.4% in 2016.
According to the data released by the Accountant General, in the April-October period, the Central Government exceeded its annual fiscal deficit target of 102.4%, while it abolished 112.5% of the revenue deficit target.
According to reports, China’s GDP growth slowed to 6% in the September quarter, the weakest quarterly growth rate since 1992, compared to 6.2% in the previous quarter.
Economists’ concern is being expressed by what Union Finance Minister Nirmala Sitharaman said earlier this month. He spoke of the revival of the economy, saying that the government is doing everything possible.
Sitharaman, while speaking to reporters earlier this month, said that it is very wrong for me to say that there is an “economic downturn”. “India’s economy is in the worst condition of the continuing decline.
India’s economic growth had declined due to a number of factors – including a slowdown in private consumption, investment, and exports – but the key indicator is a lack of debt (money to produce goods) growth and market demand.
The Narendra Modi government has taken a major chunk of reforms in recent months to boost lending in the market – to focus on giving banks incentives to lend – but to little avail.
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