Is This Tough Time For The Economy? -
Is This Tough Time For The Economy?
Posted 24 Oct 2019 12:56 PM


Is this a difficult time for the economy? Tough time will pass, Nitin Gadkari has said.

Prime Minister Narendra Modi's vision of making India a $5 trillion economy and a global economic powerhouse by 2024-25 is "challenging" but "realisable", finance minister Nirmala Sitharaman has said, underlining that more reforms are on the anvil before the close of the fiscal year.

The crisis within the Indian economy has gained unanimous acceptance by now. Even the annual report of the RBI for the fiscal year 2018-19 (or FY19) confirmed that the Indian economy has indeed hit a rough patch. The GDP growth rate of the economy has slipped to 5 per cent in the first quarter of FY20, the lowest in over six years. This is an indication of tougher times ahead.
This is the third instance of an economic slowdown for India in the past decade after the ones that began on June 2008 and March 2011.

The growth of the Indian economy had been preponderated by consumption inclusive of both, Private Final Consumption Expenditure (PFCE) as well as the Government Final Consumption Expenditure (GFCE). Over the last 5 years, the total consumption expenditure by Indian households had accelerated with an average growth rate of 7.8 per cent compared to an average of 6.1 per cent in 2011-14. But the recent sharp fall in PFCE in the June quarter to 3.1 per cent compared to 7.2 per cent in March.

We should not forget that we are the fastest-growing economy in the world. "Recession can be short-lived if corrective actions are taken immediately"

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