Connect with us

ECONOMY

GDP growth slips down from 5.8% to 5%

Published

on

The Gross Domestic Product (GDP) growth for the first quarter of the financial year 2019-20 dropped to five percent, a sharp decline of 0.8 percent points compared to the last quarter that ended in March. The current GDP numbers are the worst in the last five years.

The GDP at Constant (2011-12) Prices in Q1 of 2019-20 is estimated at Rs 35.85 lakh crore, as against Rs 34.14 lakh crore in Q1 of 2018-19, showing a growth rate of 5.0 percent, news agency ANI reported.

The financial year 2018-19 ended with an overall Gross Domestic Product (GDP) growth rate of 6.8 percent, which was marginally lower compared to the year before. The growth rate for the fourth quarter of FY 2018-19 (January to March) stood at 5.8 percent.

The new GDP growth numbers come at a time when the Indian economy is going through a downturn, which has particularly hit the auto, manufacturing and real estate sectors.

Some of the factors behind the slowdown are an uncertain world economy due to the US-China trade war and Brexit concerns, a substantial drop in consumption in the domestic market, particularly rural areas, and a decline in purchasing power.

The economic situation has got complicated in the view of banks refusing to lower lending rates and adopting a circumspect approach in extending credit to the industry.

Banks have not paid heed to the Reserve Bank of India’s call for lowering interest rates. The RBI has reduced repo rate (the interest rate at which RBI lends money to banks and rate that is directly linked to commercial banks’ lending rates) four times in a row.

Over four policy meetings, the RBI has reduced repo rate by 110 basis points, an unusual move. Banks, which are facing a bad loans crisis and liquidity crunch, however, have cut their interest rates only marginally

ECONOMY

Export growth rate drops to 6% but the Modi govt focuses on $5 trillion company

Published

on

Export growth rate drops to 6% but the Modi govt focuses on $5 trillion company

According to the official data released on India’s exports in August have dropped by 6.05 percent to $26.13 billion in comparison to the August 2018 mark which shows that in first five months of this fiscal, overall exports are down 9 percent to $15.33 billion.

Friday’s data showed a narrow trade deficit in August to $13.45 billion.

Earlier the minister had set a target by stating “India must bring back 19-20 percent export growth to become a $5 trillion economy.

The growth rate of export had fallen 41 months low in June this year as all major Foreign exchange earners such as petroleum oil, gems and jewelry and engineering goods recorded poor performance.

The imports in the same month had hit a 34 month low by a fall of 9.06 percent. The trade deficit had gone down by nearly eight percent to $15.28 billion in June which was three month low.

Outbound trade in June had diminished to a very low 9.7 percent after registering a rise of 3.93 percent in May 2019.

In August, the oil imports had shrunk by 8.9 percent to $10.88 billion while the non-oil imports were down by 15 percent to $28.71 billion.

A negative growth has been registered in the exports of gems and jewelry, and the engineering goods.

Cumulatively, during April-August 2019, exports were down 1.53 percent to $133.54 billion, while imports contracted by 5.68 percent to $206.39 billion.

Despite the nearing festival season, the gold imports have plunged 62.49 percent to $1.36 billion in August 2019.

Continue Reading

ECONOMY

Manmohan Singh claimed that flawed Policies ruined Economic growth of India

Published

on

Manmohan Singh claimed that flawed Policies ruined Economic growth of India

On Thursday Former Prime Minister Manmohan Singh attacked the government for its flawed policies that have caused the current economic slowdown and asked Congress Party leaders to hit the streets to inform people about the policies of the earlier UPA government at the Centre during the global economic recession.

The former Prime Minister’s views were supported by Congress General Secretary Priyanka Gandhi Vadra who was also present in the meeting along with several other senior leaders.

Manmohan Singh told party leaders that when the economic recession had hit the global economy our government was able to revive the economy while the current government’s flawed policies on the economy are the reason for the Slowdown.

As per the source, Manmohan Singh emphasized economic slowdown as a great challenge for the current Narendra Modi government.

 The sources said that “Manmohan Singh told the party leaders that unemployment has increased in recent times as many sectors are facing the heat of economic slowdown and gross domestic product (GDP) is continuously falling,”

He also revealed that the former Prime Minister said Congress leaders need to hit the streets and tell people about the policies of the Congress during 2007-09 when the global recession had impacted India and how the then government was able to revive the economy and generate jobs.

Continue Reading

ECONOMY

“Maths did not help Einstein discover gravity” comments Piyush Goyal

Published

on

“Maths did not help Einstein discover gravity” comments Piyush Goyal

On  Thursday Union Commerce Minister Piyush Goyal was attending a Board of Trade meeting when he said that “Maths did not help Einstein discover gravity”

Piyush Goyal in an attempt of defending the government against the allegations of an economic slowdown. He was trying to answer the question of how projected GDP growth rates which is not aligned with $5 trillion dollar economy mission.

Piyush Goyal in an impassioned way against the GDP calculations made by experts and said that “Don’t get into the calculations that you see on television…don’t get into those maths. Maths has never helped Einstein discover gravity.”

He then continues: “If he [Einstein] had only gone through structured formulae and what was past knowledge, I don’t think there would have been any innovation in the world.”

Continue Reading

Top News