Gross Domestic Product (GDP) for the second quarter of FY19-20 shows growth rate of 4.5%
Eight core industries output in October declined by 5.8%. In the previous quarter, India's economy had grown at 5% -- the slowest pace in over six years.
Speaking to PTI earlier on Friday, Chief Economic Adviser K V Subramanian on Friday said the cut in corporate tax rate was required to boost investments as the virtual cycle that spurs growth in the economy has not been functioning as expected for the last few quarters.
"For us (India) to achieve the goal of USD 5 trillion economy by 2024-25, and USD 10 trillion by 2030, we need to press the paddle on structural reforms," he had said.
The government has undertaken a number of measures to arrest growth slowdown. In September, it announced a cut in the corporate tax rate to 22% from 30%.
It also lowered the tax rate for new manufacturing companies to 15% to attract new foreign direct investments.
GDP growth graph over the last few years:
GDP growth rate has fallen for the sixth consecutive quarter
We are in a virtual free-fall: Randeep Singh Surjewala
Q2 FY20 slowdown largely due to sharp dip in manufacturing sector and agriculture output: Ministry of Statistics and Programme Implementation
The slowdown in Q2 FY20 was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.
The weak GDP growth in Q2 was also caused by grim industrial output data which contracted 0.4 per cent during the quarter against 3 per cent expansion in the preceding three months.
Heavy rainfall in August and September along with a delayed withdrawal of the monsoon constrained activities in the mining and construction sectors.
It also contributed to a lower demand for electricity from the agricultural and household sectors. In addition, muted industrial activity reduced the demand for electricity generation. (ANI)
India's GDP growth levels are now below countries such as Vietnam, China, Egypt and Indonesia
Indian economy cannot be managed through colourful headlines : Former PM Manmohan Singh
Former Prime Minister Dr Manmohan Singh today commented on the Q2FY20 GDP of 4.5%.
"It is importance businessmen to feel confident. It is possible if the government begins to trust its entrepreneurs," he said.
Speaking at a national economy conclave Singh said, "The state of our economy is deeply worrying. One cannot separate society and economy in any nation. The GDP figures, that growth rate is as low as 4.5%, is unimaginable. It is worrisome," he said, reports The Free Press Journal's
"The state of our economy is deeply worrying but I will argue how the state of our society is even more worrisome," he added.
"Merely changes are not enough to revive economy," he cautioned.
"Our social fabric of trust and faith is torn and fear is in the society. Many industries told me that they feel fear from government agencies," he said.
Modi's Principal Secretary says 'on way to $5 trillion economy'
Principal Secretary to the Prime Minister Pramod Kumar Mishra on Friday said the government is on track to realise Prime Minister Narendra Modi's dream of making the country a five trillion dollar economy by 2024.
"Innumerable initiatives are being taken in line with our Prime Minister's vision of a New India! On the economic front in particular, he has set a goal of becoming a five trillion dollar economy by 2024. While this is an ambitious aspiration, we are on track and fully committed to the same," said Mishra.
"During the period 2014 to 2019, our annual average GDP growth of 7.5 per cent was the highest since Independence. It was also the highest among the G20 countries," he said.
Mishra said macroeconomic stability during the last five years has been the bedrock on which various reforms have been rolled out.
"We have kept inflation low, fiscal spending disciplined, and current account deficit under control. If we compare the two periods 2009-14 and 2014-19, inflation has decreased from 10.3 per cent to 4.5 per cent, fiscal deficit from 5.3 per cent to 3.4 per cent of GDP, and current account deficit from 3.3 per cent to 1.4 per cent of GDP," said the top official.
He said India is set to grow at a much faster pace in the coming months and years. (IANS)
Do you know what the real growth rate today is? I’m saying it is 1.5%: Subramanian Swamy
In an interview with Huffington Post India given on Wednesday, Subramanian Swamy said that the finance minister “doesn’t know any economics”.
“Do you know what the real growth rate today is? They are saying that it is coming down to 4.8%. I’m saying it is 1.5%,” he had said before the data was released.
“What is the problem in the country today? Poor demand. Supply is not the problem. But what did she do? She relaxes taxes for corporates. Corporators are flushed with supply. They will just use it to write off their debts. That is what they have done,” Swamy told HuffPost India.
Swamy alleged that Prime Minister Modi's advisors were too afraid to tell him the truth.
