Indian Economic Slowdown Partly Because Of Global Economic Slump: CEA

Mumbai: Chief Economic Advisor Krishnamurthy Subramanian said on Friday that the global economic slowdown is partly to blame for the slowdown in the Indian economy.

“The Indian economy has slowed down. The global economy is slowing down. You can see the world, the advanced economies, and emerging economies have all slowed down in 2019 as compared to the average for 2014 and 2018,” he said.

He also said that according to an analysis, the wealth created by entrepreneurs benefits everyone, including employees and suppliers.

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“The year 2013 was at a peak when the share of corporate loans reached its peak. After that, it has come down … The firms that borrowed a lot from 2008 to 2012 were actually firms that had Had less investment from 2013 to 2017,” Subramanian said.

Noting that the economic downturn since 2017 is due to the lingering effects of low investment, he said: “The virtue cycle arises from private investment, which affects economic growth and which leads to consumption.”

The Economic Survey 2020 was presented in the Parliament by Finance Minister Nirmala Sitharaman today.

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It stated that the country’s gross domestic product (GDP) is projected to grow at a rate of 6 to 6.5 per cent in the next financial year 2020-21.

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