New Delhi: Chief Economic Adviser K V Subramanian on Friday said that India's GDP growth has seen a "slowdown" due to several factors including "trade conflict" between the US and China and noted that the country needs have an average growth rate of 8 per cent in order to become for $ 5 trillion economy.
"The quarterly GDP estimates for the quarter ending June 2019 indicates that India's GDP growth, while still high, has shown a slowdown. Similar phenomena have also been observed previously when growth was around 5 per cent," he told reporters in a press conference.
"This has been on account of both exogenous and endogenous factors. The government is quite alive to the situation especially global headwinds out of deceleration in the developed economies and Sino-American trade conflict has contributed to the slowdown," he added.
The economic growth slowed to a seven-year low of 5 per cent in April to June quarter from 8 per cent a year ago, government data showed on Friday. The Chief Economic Adviser said that the government has been taking pro-active steps to handle the situation.
"Alive to imperatives of achieving the target of achieving US dollar 5 trillion economy as well as the need to handle the short term situations, the government has been taking proactive steps... We need an average growth of 8 per cent. We are confident that that increase in growth will start manifesting in some time," he said.
Asked whether growth rate will remain above or below 7 per cent this year, Subramanian said: "I think it will be very hard to speculate on that particular aspect.
The steps taken by the government should have an impact in accelerating the growth path." The economic adviser said that electricity and power generation has witnessed an upward trend.
"Electricity and power generation, which is a leading indicator across the world, grew by 8.6 per cent - a good sign of green shoots towards higher growth.
Typically world over electricity and power generation is a good leading indicator. It has grown by 8.6 per cent compared to 4.3 per cent earlier," he said.