Even as GDP growth slipped to 4.5%, BJP MP Nishikant Dubey played it down saying that it wasn’t the ‘Bible, Ramayana or Mahabharata’, adding that it wasn’t ‘an indicator of economic growth’.
He said that before 1934, the concept of GDP didn’t exist. He added that today, one should see if there is ‘sustainable economic welfare available to a person’.
He said: “GDP 1934 mein aaya issey pehle koi GDP nahi tha...... Keval GDP ko Bible, Ramayan ya Mahabharat maan lena satya nahi hai aur future mein GDP ka koi bahot zyada upyog bhi nahi hoga. Aaj ki nai theory hai ki sustainable economic welfare aam aadmi ka ho raha hai ke nahi ho raha. GDP se zyada important hai ke sustainable development, happiness ho raha hai ke nahi ho raha.”
Why is the GDP low?
Subdued consumption trend along with a massive contraction in manufacturing, agriculture and mining activities pulled India's GDP growth rate down to 4.5 per cent in the second quarter of 2019-20.
This is the slowest GDP growth rate in around six years. The growth on a year-on-year basis during Q2 2018-19 had stood at 7 per cent.
On a sequential basis, the growth rate came lower than the 5 per cent recorded in Q1 of 2019-20, 5.8 per cent in Q4 2018-19, and 6.6 per cent in Q3 2018-19.
At present, India's economy faces a severe demand slowdown on account of high GST rates, farm distress, stagnant wages and liquidity constraints.
This trend of subdued consumption, referred to as slowdown, is being cited by economy watchers as the prime reason for the successive fall in GDP growth rate.
All the major sectors, including automobile, capital goods, banks, consumer durables, FMCG and real estate, have been heavily battered.
Consequently, the output of manufacturing, mining and electricity generation, among others, have plunged, causing job losses.
The National Statistical Office (NSO) data showed that Gross Value Added (GVA) growth rate during the second quarter of 2019-20 on a YoY basis fell to 4.3 per cent, from 6.9 per cent during the like period of the previous fiscal.
"Quarterly GVA (Basic Price) at Constant (2011-2012) Prices for Q2 of 2019-20 is estimated at Rs 33.16 lakh crore, as against Rs 31.79 lakh crore in Q2 of 2018-19, showing a growth rate of 4.3 per cent over the corresponding quarter of previous year," the NSO said in a statement.
The GVA includes taxes, but excludes subsidies.
As per the estimates, the growth in the 'agriculture, forestry and fishing', 'mining and quarrying', 'manufacturing', 'electricity, gas, water supply & other utility services' and 'construction' is estimated to be 2.1 per cent, 0.1 per cent, (-) 1 per cent, 3.6 per cent and 3.3 per cent, respectively, during this period.
Another key growth gauge -- Gross Fixed Capital Formation which underscores the overall investment levels to procure assets at constant (2011-2012) prices -- is estimated at Rs 10.83 lakh crore in Q2 from Rs 11.16 lakh crore in Q2 of 2018-19.
With inputs from agencies