The country's GDP rate is 5 percent, the lowest in 11 years: finally the government recognizes a recession

Gross value added (GVA) rates will drop from 6.6 to 4.9 percent

New delhi date. January 7, 2020, Tuesday

The government finally acknowledged the downturn today. The government had said that the GDP rate in the country will be 5% in FY 2019-20. This rate is the lowest in the last 11 years. Prior to 2008-09, when the whole world was in recession, the country's GDP rate was 3.1 percent.

Finance Minister Nirmala Sitharaman said the country's gross domestic product (GDP) rate has been reduced due to slow growth in the manufacturing sector. The year will now end in March, so it is unlikely that there will be any significant increase in the estimates presented now.

The GDP rate during the financial year 2018-19 was 6.8 percent. On the one hand, the government wants to deliver 5 trillion figures by 2025, almost double the current level. For this, the GDP rate should be 12% per annum. The fact is that different figures on the economic front are disappointing.

Earlier, various financial institutions in the country and abroad presented projections that the growth rate was declining. The government did not accept the truth at that time. But now the figures released by the National Statistical Office (NSO) revealed the truth to the country.

Meanwhile, the government has waited to reduce costs. This year, government expenditure will be cut by around Rs 2 lakh crore. The reason for the reduction in tax collection was due to shortage of funds. Private investment in the country has been declining for the past six years. As a result, financial food is being treated.

In addition to GDP, the gross value added (GVA) rate was 6.6 percent, which will be reduced to 4.9 percent this year, the government estimates. The economy of the country is dependent on agriculture and manufacturing sector. Manufacturing growth has dropped from 6.9 percent to 2 percent. So the economy is seeing its adverse effect.