India's GDP plummeted to 4.5 per cent: at the bottom of six years

It had earlier recorded 4.3% of GDP in the January-March quarter of 2012-13: July-September of 2019. China's GDP for the quarter was six percent

(PTI) New Delhi, Ta. November 29, 2019, Friday

Due to poor performance of manufacturing and agriculture sector in the country, GDP for the second quarter of the current fiscal year 2019-20, from July to September, has been reduced by 4.5 per cent, according to data released by the government.

The second quarter's 4.5% GDP is the lowest GDP seen in the last six years. The GDP for the second quarter of 2018-19 was seven percent. In the first quarter of the current fiscal, the GDP was five percent. For the January-March quarter of 2012-13 fiscal, the GDP was 4.3%.

According to data released by the National Statistical Office (NSO), the manufacturing sector's gross value added (GVA) growth has declined by 1 percent. Manufacturing sector's gross value added (GVA) growth was up 6.9 percent in the same period last year.

Similarly, the agriculture sector's gross value added (GVA) growth has dropped to 2.1 per cent, showing an increase of 4.9 per cent over the same period last year. The development of the construction sector also declined by 3.3 per cent. That was 8.5 percent in the same period last year. Mining sector growth is down 0.1% from 2.2% in the same period a year ago.

The growth in services including electricity, gas, water supply has also been down 3.6 per cent. Likewise, the growth of trade, hotel, transport and communication sectors declined by 4.8% in the corresponding period of the previous year. That was 6.9 percent in the same period last year.

The growth in financial, real estate and professional services also declined to 5.8 per cent from 7 per cent in the same period last year. The development of public administration, defense and other services has increased from 8.6 percent to 11.6 percent.

On a yearly basis, GDP growth from April to September 2019 is 4.8 per cent, compared to 7.5 per cent in the same period last year. The NSO said in a statement that GDP in the second quarter of FY 2018-19 was Rs 34.43 lakh crore.

This is an increase of Rs 35.99 lakh crore in the second quarter of 2019-20. That is, GDP has seen a growth of 4.5%. It is worth mentioning that in the July-September quarter of 2019, China's GDP was 6%. Which was China's 27th lowest growth rate.

On the disappointing GDP figures, the government's chief economic adviser, KV Subramanian, said that GDP is likely to rise in the third quarter. "We once again state that the foundation of the Indian economy will remain strong," he said.

The fiscal deficit surpasses the target set within the first seven months

The fiscal deficit has already crossed the target in the first seven months. The government has set a target for the fiscal year 2019-20 to be Rs 7.2 lakh crore in the budget. On the other hand, by the end of October, the fiscal deficit had risen to Rs 7,20,445 crore. During the period from April to October, the government received revenue of Rs 6.83 lakh crore and expenditure of Rs 16.55 lakh crore.

What connection to ordinary human beings with GDP?

GDP figures also have an impact on ordinary human beings. The decline in GDP figures reduces the average income and keeps people below the poverty line. In addition, the speed of creation of new jobs also decreases.

On the other hand, people's savings and investment also decline. In such a situation, people are less likely to buy, thereby reducing the production of companies. Companies reduce the number of employees due to reduced production.

The outlook of the economy over the last few quarters contradicts the perception: Subramanian

New Delhi, Ta .29

"The Indian economy has not been growing as expected for the past few quarters," Chief Economic Advisor KV Subramanian said in a statement. He further said that it was necessary to reduce the corporate tax to increase investment.

Some structural changes will have to be made to make the economy $ 5 trillion by 2024-25 and $ 10 trillion by 2030. Investment is very important to boost the economy. Companies have been forced to cut production due to falling demand in the last few quarters.

Strikes on Congress' center on declining GDP

India's 4.5% GDP unacceptable and worrying: Manmohan

Why is BJP celebrating despite GDP declining? : Randeep Surajewala

New delhi date. 29

Expressing concern over the GDP figures released today, former Prime Minister Manmohan Singh today said that 4.5% of GDP is not acceptable to India under any circumstances.

Manmohan Singh further said that the stagnation of our economy is very worrying. Our country's GDP may remain at eight to nine percent, but the decline in GDP growth in the last two quarters is worrying. He said that just changing economic policies will not help the economy survive.

The former Prime Minister said that at present, the economy of the country has a climate of fear which needs to be changed in confidence. Meanwhile, Congress spokesperson Randeep Surjewala criticized the Modi government and questioned why the BJP was celebrating despite GDP declining. That's because their GDP (Godse Divisive Politics) is showing double digit growth.