After 6-Year Low In GDP Growth In October-December, Government Sees Rebound Ahead
- The GDP growth rate in the December quarter matched the forecast of analysts in a poll by news agency Reuters, but was below a revised 5.1 per cent growth rate for the previous quarter.
- The official data showed consumer demand, private investment and exports all struggling, while higher government spending and an improvement in rural demand lent support.
- The figure for the July-September period was revised to 5.1 per cent from 4.5 per cent, according to the statistics ministry statement. Also, the estimate of GDP expansion in the first quarter of 2019-20 (April-June) was revised to 5.6 per cent from 5 per cent.
- “The upward revisions in historical data present a complicated picture of growth, even though high frequency data is improving,” said Rahul Bajoria, chief India economist at Barclays. “We reckon a modest recovery continues to stay intact, and will gather some more steam in coming months despite mounting global risks.”
- Prime Minister Narendra Modi's government took several steps earlier this month to try to bolster economic growth, including increasing state spending on infrastructure.
- But many economists expect the impact of those efforts to be outweighed by the global fallout from the coronavirus epidemic that began in China.
- The government is targeting only a slight recovery in growth to 6 per cent for 2020-21, from a more than 11-year low rate of 5 per cent this financial year, far below the level needed to generate jobs for millions of young workers entering the labour market each month.
- The Finance Minister had earlier maintained that the fundamentals of the economy remain strong, and that she was not closing the door on additional steps to support it.
- The Reserve Bank of India (RBI) had kept the repo rate unchanged at 5.15 per cent in a bid to combat consumer inflation, and projected a GDP growth rate of 6 per cent for the financial year starting April 1 while retaining the estimate for the current financial year at 5 per cent.
- India lost its position as the world's fastest-growing major economy last year. The government has set a target of making the country a $5-trillion economy by 2024.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
