India’s GDP growth to 4.5 Percent in September Quarter 2019
The Country’s Economic growth slowed to 4.5 Percent in the Second quarter of current Fiscal 2019-20. The So-called economic growth is for the period of July to September 2019. Gross Domestic Product growth stood at 5 Percent in the previous quarter, which was seen as lowest in the past 6 years.
The current growth slump is less than the Market’s expectation of 4.7 Percent growth. The Spike in Manufacturing, Investments and the decline in exports have affected the GDP growth index.
Over the past two years, there is an economy slow down globally. India’s GDP growth was also fallen down for the Five consecutive quarters. While many changes have been made to boost the economy by the Government, but their arrival has been delayed.
In the upcoming months, the REPO rate is likely to be lowered again. It is noteworthy that after the Implementation of Demonetization and GST, the expected investment inflows and Consumption declines. However the current slow down is said to be Temporary.
Earlier the GDP growth for India is around 8 Percent in the second half of 2018. Now, it was declined to 4.5 Percent gradually by every quarter. We can expect the December quarter 2019 numbers will play the major role next year. It will decide whether the current economy is slowing down or leading to Recession.
Recent Corporate Tax Cuts, Promotion on Vehicle Purchase, Recapitalization for Banks and NBFCs have also been made to stimulate the economy. The Reserve Bank of India (RBI) has been continuously reducing its interest rate.
There has been insufficient growth in the Financial Sector, Real Estate, Trade, Transport and Telecommunication Sector. At the same time, there is a significant growth in Defense and Public Administration in the said quarter.
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