Growth index data on Friday marked the lowest ever last quarter in more than six years, with the growth rate dropping below the symbolically important 5% mark.
The announcement of mini budgets and economy revival packages announced by FM Sitharaman shows no sufficient pulling power with the recession gradually affecting other Industrial areas which started as downbeat figures in Automotive sales and a plunging export slump.
Having exhausted the Reserve bank’s Capital buffer the govt is eying the Nations Gold reserves.
India was the world’s fastest-growing economy until last year, posting quarterly growth rates of as high of 9.4% in 2016. A crisis among shadow banks — a key source of funding for small businesses and consumers — weak rural spending and a global slowdown have since conspired to bring down growth steadily. “The nature of the slowdown is broad-based, with consumption, as well as investment-oriented sectors, feeling the pain,” said Indranil Pan, chief economist at IDFC First Bank Ltd. in Mumbai. “Continuing poor domestic sentiment along with the lack of any demand uptake globally would ensure that any recovery process would only be gradual.”
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