India’s economic growth is telling a disturbing story as the recently published GDP for the second quarter took a sharp fall at merely 4.5%. It is the GDP growth rate from July to September, which is the lowest in the past six years. This has raised a growing concern for the Indian government and the population. The economic growth of a country decides its stability and performance. If this continues to slip further, it will broadly impact the farmers, youth, and poor people of India.
Where’s the $5 Trillion Economy?
The claims of the government to raise the Indian economic growth rate to a double-digit have had a flat fall. There has been a visible downfall in random quarters, though not in succession. The leaders who promised a $ 5 Trillion economy of India by 2024-25 can please look at the numbers and correct their expectations. After a remarkable GDP growth of 9.4% in the first quarter, this sharp fall in the second quarter is shocking, though not unexpected by economists.
Manufacturing contracted, and infrastructure sector output went through a decline too. In spite of the government’s efforts to slash corporate taxes, introducing real estate packages, nothing substantial could be achieved. Interest rates were reduced to improve liquidity, banks were merged, and many major strategies applied for growth rate. Nothing seemed to work in the economy’s favor.
Finance Minister ‘Nirmala Sitharamans’ Policies face Opposition’s Wrath
India’s former PM ‘Manmohan Singh’, who is also a great economist, expressed disappointment over the 2nd quarter GDP results of India. He called it worrisome for the future of the Indian economy. It may be noted that he has achieved great economic development for India in the past years. He highlighted the government’s inefficiency towards maintaining the economy.
Even the BJP’s(party in power) allies have questioned the Union Government over these numbers. They pointed out how there is increasing unemployment due to a lack of growth. People, especially the youth of the country, are rendered jobless.
Economist Expect Growth in Coming Quarters
Many economists and civil service officials have expressed their concerns. Some believe that this decline is short-lived, and Q3( Oct-Dec) will see a significant jump. However, many have criticized the finance ministry’s observation of targeting the supply, not the problem of demand. Some sight the economy to come back to a decent rate somewhere around June-July next year. However, that depends on the monsoons and their impacts on agriculture.
Keeping in mind the factors that caused the decline, the government needs to act swiftly to accelerate the economic growth and bounce back to its previous trajectories of growth rates.
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