"At fiscal year-end March 2020 (fiscal 2020), we project government deficit will be about 3.7 per cent of gross domestic product (GDP) for the Central government and around 3 per cent for states, adding up to a general government deficit of about 6.7 per cent", the report said.
The slowdown in Asia's third-largest economy took a turn for the worse this year as consumers curbed spending, businesses held back on investments and export demand slumped. Because their understanding of GDP (Godse Divisive Politics) suggests double digit growth levels. Sitharaman said the government was monitoring the situation and would tweak policies to prevent the economy from slipping further.
The start-ups are living under a shadow of "constant surveillance and deep suspicion" the former Prime Minister said.
Here how Dalal Street experts and economists reacted to the GDP data: Amar Ambani, Senior President & Research Head, YES Securities The GDP growth figure is as per our estimate for Q2FY20.More news: U.S. envoy to European Union accused of sexual misconduct by 3 women
Reacting over the plummeting economy, Congress spokesperson Randeep Singh Surjewala tweeted, "India's GDP has collapsed to an abysmal 4.5%". This is clearly unacceptable.
India needs to grow at around 8 per cent to create enough jobs for its millions of young people joining the labour force each year. "Mere changes in economic policies will not help revive the economy", Manmohan said.
A nation's state of the economy is also a reflection of the state of its society. "Our social fabric of trust and confidence is now torn and ruptured", the former PM added. The fiscal deficit target for 2019-20 has been set at 3.3 per cent of the GDP.
The consensus among economists predicted no revision to the GDP result.
However, consumer spending which has been the main pillar of the economy seems to be moderating after October real consumption increased by just 0.1%, the smallest gain since February. "GDP growth is expected to pick up from 3rd quarter of FY 2019-20", the finance ministry tweeted quoting department of economic affairs secretary Atanu Chakraborty.More news: $300 Target gift card] Google Pixel 4/XL $200 off, 3a $299, more
Electricity registered a growth rate of 0.4% during Q2 of 2019-20, as opposed to 7.5% in Q2 of 2018-19.
On the other hand, imports declined by 16.31 per cent to $37.39 billion in October from $44.68 billion reported for the corresponding month of 2018.
Meanwhile, the government said though growth may have slowed, there is no fear of recession, which is typically defined as negative growth for two straight quarters.
However, capital investment growth slipped to 1% from 4%, indicating that despite rate cuts firms are putting investment on hold, while agriculture grew modestly and manufacturing contracted by 1.0%.
Congress' chief spokesperson Randeep Surjewala slammed the Centre and stated that "India's GDP has collapsed to an abysmal 4.5 per cent". We are in a virtual free-fallWe are in a virtual free-fall. "And ministers dozed off in their seats". No wonder, full Opposition walked out of Rajya Sabha 40 minutes into the FM's speech this week.More news: Michael Gove turned away from leaders’ climate change debate