New Delhi, Feb 29: India’s economy expanded at its slowest pace in more than six years in the last three months of 2019, with analysts predicting further deceleration as the global Covid 19 coronavirus outbreak stifles growth in Asia’s third-largest economy.
The gross domestic product (GDP) data released yesterday showed government spending, private investment and exports slowing down, while there is a slight upturn in consumer spending and improvement in rural demand lent support.
The quarterly figure of 4.7% growth matched the consensus in a Reuters poll of analysts but was below a revised - and greatly increased - 5.1% rate for the previous quarter.
The central bank has warned that downside risks to global growth have increased as a result of the coronavirus epidemic, the full effects of which are still unfolding.
Prime minister Narendra Modi’s government has taken several steps to bolster economic growth, including a privatisation push and increased state spending, after cutting corporate tax rates last September.
In its annual budget presented this month, the government estimated that annual economic growth in the financial year to March 31 would be 5%, its lowest for last 11 years.
Modi’s government is targeting a slight recovery in growth to 6% for 2020/21, still far below the level needed to generate jobs for millions of young Indians entering the labour market each month.
The annual GDP figure for the September quarter was ramped up from an earlier estimate of 4.5%, while the April-June reading was similarly lifted to 5.6% from 5%, data released by the Ministry of Statistics showed on Friday.
Capital Investment Drop
In the December quarter, private investment grew 5.9%, up from 5.6% in the previous quarter, while government spending rose by 11.8%, against 13.2% in the previous three months.
However, corporate capital investment contracted by 5.2% after a 4.1% decline in the previous quarter, indicating that interest rate cuts by the central bank have failed to encourage new investment. Manufacturing, meanwhile, contracted by 0.2%.
“It appears growth slowdown is not just cyclical but more entrenched with consumption secularly joining the slowdown bandwagon even as the investment story continues to languish,” said Madhavi Arora of Edelweiss Securities in Mumbai.
Many economists said that the government stimulus could take four to six quarters of time before lifting the economy and the impact of those efforts could be outweighed by the global fallout from the coronavirus epidemic that began in China.
“The coronavirus remains the critical risk as India depends on China for both demand and supply of inputs,” said Abheek Barua, chief economist at HDFC Bank.
Indian shares sank on Friday for a sixth session running, capping their worst week in more than a decade. The NSE Nifty 50 index shed 7.3% over the week, while the Sensex dropped 6.8%, the worst weekly declines since the 2008-09 financial crisis.
Separately, India’s infrastructure output rose 2.2% year on year in January, data showed on Friday.
A spike in inflation to a more than 5-1/2 year high of 7.59% in January is expected to make the RBI hold off from further cuts to interest rates for now, while keeping its monetary stance accommodative.
Comments
First teach your own men to stop intolerance.
Are you people blind not seeing surge in oppression of poor.
You don't want people to raise their concern when you do all harms to poor and minorities.
Teach patriotism and tolerance to your own men.
Teach them to Denounce Godse who killed the father of Nation who gave you an identity to call you as proud Indian.
Muslims do not need any extra teaching from others.
They have full guidance from their God
Now if you are a true concerned of your nation, then at least learn what is teaching of Islam, just adapt in your routine life.
RSS should come forward to punish the killer of mahatma gandhi. They should ban Nathuram Godse's supporters.
RSS founder and its founding members already proved their patriotism during the time of India's freedom struggle!! We Muslims in India proved our patriotism from Shaheed Tippu Sultan\s time till now, we no need any advice from RSS. A Muslim is not a complete Muslim unless he is not patriotic to his country where he/she live, this is our Prophet's word."
Dear Mr. Indresh Kumar,
Please make sure that loving one's country and its people is a good traits of the Muslims as our beloved Prophet Muhammed (peace be upon him) has said: \Love of your country (patriotism) is a part of your faith.
Never be under the opinion that Madarasas are not teaching patriotism. We love our country as you love.
Patriotism is love of one's country, loyalty and devotion to it, desire to grow and prosper collectively or as a community, and you need to understand that we muslims are being dignified citizens of India proud to say that many of our patriotic ancestors have sacrificed their blood and life during the freedom struggles of our great nation. Please make sure that Islam does not forbid a Muslim to love his homeland or the country in which he lives or grows up.
Almighty Allah says: \"O Mankind! we have created you from a male and a female, and made you into nations and tribes, that you may know one another. Verily the most honorable of you with Allah is that (believer) who has Taqwa, Muttaqoon (pious)\". Verily Allah is all knowing all aware (Quran Chapter Hujuraat, verse No. 13).
May God help all of us to live in peace in this great Nation, INDIA."
RSS should learn what is PATRIOT not the muslims or madrasa childrens.
RSS - Stop making communal voilences,bomb explosions and divie an disturbences in the society.
Preach the patriotism to thier affialitaions like VHP, Bajrangees and Goodaisms groups.
ont question Muslims patriotism.
Yes thats why you are alive.....................
we know how to LOVE our country ,Quran teaches us very nicely , we are all patriotic Indian muslims, our country is our home
Muslims love India more than you do......unlike Nathuram Godse who killed Gandhiji....
Killer of Mahatma Gandhi speaking of Patriot..
No Need Advice from RSS For Muslim
Love your country is part of islam .....
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