GDP growth in April-June quarter slides to 5.7%
As per data, the growth of Indian economy slumped to a three-year low in the April-June quarter. Gross domestic product (GDP) grew merely 5.7% during the latest quarter, while in the preceding quarter it was 6.1% and in the same period, last fiscal 7.9% GDP growth was witnessed. The previous low was 4.6%, which was noticed in January-March 2014. Here's more about it.
Calling this slow-growth a "pre-GST effect," FinMin Arun Jaitley said, "It is quite obvious that it, therefore, throws up a challenge for the economy. In the coming quarters, we really require, both in terms of policy and investments, to work more to improve upon these figures." June quarter "is a matter of concern" but Jaitley is optimistic about a recovery in the coming quarters.
This comes as a major blow to the NDA government led by Narendra Modi, which is, currently facing flak from all quarters. The massive demonetization scheme, which was initiated by Modi, had caused severe cash squeeze through out last year. And, as RBI-released data shows, its outcome has been way different from what was promised.
Abheek Barua, chief economist with HDFC in New Delhi, told Reuters, "The numbers seem to suggest that the slowdown from last quarter has intensified due to the combination of long-term slowdown and temporary shock factors like demonetization and GST. The firm will, therefore, revise its GDP outlook numbers for the full year." The GDP number is "disappointing," said Crisil's D. K. Joshi.