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India’s GDP growth was very much slower than expected: Crisil Reports

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On Wednesday Domestic rating agency Crisil cut India’s GDP growth forecast to 6.3 percent for the Fiscal year 2020 from its earlier forecast of 6.9 percent. This comes after the GDP growth was at its slowest in almost 6 years and it grew only at 5 percent in the first quarter.

The agency has said that the lower GDP growth forecast corroborates that India’s economic slowdown is deeper and more broad-based than suspected.

Crisil statement said that “We expect growth to get some lift from the low base effect of 6.3 percent in the second half of the FY19.”

Earlier Moody’s too had revised India’s GDP growth forecast for the current year to 6.2 percent saying the economy remains sluggish due to a combination of factors such as weak hiring, distress among rural households and tighter financial conditions.

The GDP growth forecast for 2019 calendar year was revised downwards from its previous estimation of 6.8 percent.

Moody’s said in a statement “The same for 2020 was also lowered by a similar 006 percentage points to 6.7 percent.

GDP growth rate had hit a five-year low of 5.8 percent in the January-March quarter and the government is slated to announce the first quarter (April-June) growth number on August 30.

The Reserve Bank of India (RBI) too had earlier this month lowered GDP growth estimate for the current fiscal that began on April 1 to 6.9 percent from the previous estimate of 7 percent citing demand and investment slowdown.

On the other hand at a press conference on Sunday, Finance Minister Nirmala Sitharaman refused to answer questions to acknowledge the economic slowdown facing the country.

The Modi government has come under severe criticism by the Opposition over the low growth rate. Former Prime Minister Manmohan Singh issued a statement on Sunday saying the current slowdown is a result of the “man-made disasters” caused by the government.

ECONOMY

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

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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.

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Manmohan Singh claimed that flawed Policies ruined Economic growth of India

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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.

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ECONOMY

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

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“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.”

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