SME Times is powered by   
Search News
Just in:   • Equity indices break two-day losing streak on value buying  • IMF urges Sri Lanka to tighten monetary policy  • Global semiconductor sales to reach $676 bn this year: Gartner  • Tinna Rubber hits upper circuit, investors accumulate 900% returns in year  • Availability of jobs in Japan improves for 1st time in 3 yrs 
Last updated: 02 Mar, 2020  

GDP.Q3.9.Thmb.jpg Growth concerns

   Top Stories
» Net direct tax collection reaches highest-ever figure in FY 22
» Musk has to manufacture here to sell Tesla cars in India: Gadkari
» Round tripping of industrial inputs by large players unfavourable to local value chains
» Sitharaman engages investors in Silicon Valley
» Modi hails India's success in achieving target of $400 billion of exports
Bikky Khosla | 02 Mar, 2020

The Indian economy grew at 4.7 percent - its slowest rate in more than six years - in October-December 2019 quarter, according to official data released last week. Immediately after release of the data, Finance Minister Nirmala Sitharaman termed the growth rate as indicative of "steadiness" in the economy. In a similar tone, a top official said that the decline in economic growth has bottomed out. Some economy watchers, however, prefer to take a more cautious approach.

Interestingly, the data furnished by the NSO in the 'Second Advance Estimates of National Income, 2019-20' as well as 'Quarterly Estimates of GDP for Q3, 2019-20', showed revised growth figures for earlier periods. The revision for the September quarter was up sharply from the previous 4.5 percent to 5.1 percent while the NSO revised its growth estimates upward for the June quarter to 5.6 percent. These figures show that the economy is yet to bottom out.

Also, the growth is uneven across sectors. Agro and allied, public administration and mining industries showed healthy performance, but manufacturing, electricity and construction related sectors continued to exhibit contraction. The NSO has forecast manufacturing growth to slip to 2 percent year-on-year in FY20 which is a 15-year low, as against 6.9 percent growth in FY19. Construction growth is seen slipping to a 6-year low of 3.2 percent in FY20 from 8.7 percent in the last fiscal. These figures raise concern.

Meanwhile, the Corona virus outbreak can put our already fragile economic recovery at risk. The virus is spreading rapidly around the world and some economy watchers view that it may derail the global economic recovery as well. So, India has to brace itself for a possible impact on the economy. At the same time – though there is no need for alarm -- our government must be extra vigilant and take adequate steps to prevent any possible spread of the deadly virus in the country.

I invite your opinions.

Print the Page
Add to Favorite
Share this on :

Please comment on this story:
Subject :
(Maximum 1500 characters)  Characters left 1500
Your name:

  Customs Exchange Rates
Currency Import Export
US Dollar
UK Pound
Japanese Yen 58.85 56.85
As on 27 Apr, 2022
  Daily Poll
COVID-19 has directly affected your business
 Can't say
  Commented Stories
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter