Forecast puts GDP growth at 11-year low of 5%
NEW DELHI: The economy is forecast to grow at its slowest pace in 11 years in 2019-20, dragged down by anaemic manufacturing, slowing services sector growth, as well as sluggish investment and consumption. With the Union Budget less than a month away, the dismal forecast will add pressure on the authorities to revive the economy.
The National Statistical Office on Tuesday forecast GDP growth to be 5% in 2019-20, slower than the previous year's 6.8% and in line with the RBI estimate. If this growth is realised, then it would be the slowest since 3.1% posted in 2008-09 in the aftermath of the global financial crisis. Nominal GDP, which is the market value of goods and services produced in the economy but not adjusted for inflation, is estimated to grow at a42-year low of 7.5%.
Manufacturing is estimated to slow to 2% in 2019-20 from 6.9% the previous year while the services sector, which accounts for nearly 60% of the economy, is forecast to grow by 6.9%, slower than 7.5% in the previous year.
GDP data points to weak investment in FY20
Economists said there is a sharp decline in the growth of gross fixed capital formation (GFCF) from 10% in FY19 (revised estimate) to 1% in FY20 (advance estimate), reflecting the subdued investment activity in the economy.
The go nment aims to rein in the fiscal deficit at 3.3% of gross domestic product in the current fiscal year but the pressure on revenues may widen the deficit. There have been calls for relaxing the deficit target to provide space for stimulus to the economy but the go nment has so far maintained that it will stick to the path of fiscal consolidation.
Shaktimaan • 6 hours ago
GDP at 11 year low? Modi hai to mumkin hai!
TEABOY is gujju • TEABOY is gujju • Delhi • 8 hours ago
No problem...10th std failed tea boy will inflate figures and forecast 10 trillion dollars economy
Nadeem Akram Shaikh • 6 hours ago
Real GDP is 2.8 only
VasaiKars M• 7 hours ago
Revised method of calculation govt is saying 5 percent. God knows real gdp.
Sohail Rajwani • 7 hours ago
They said economy will grow by 10 percent they meant for ambani and adani lol , reliance shares were 400 RS in 2014 and now 1500 RS in 2020 that's called ache din murkho
Yashodhan • Mumbai • 5 hours ago
11 year low but Modi wants it 70 year low and then start from Scratch.
Amit Kumar Sharma • Israel • 4 hours ago
Modi a failure
Mohsin Sayed • Pune • 7 hours ago
Same people who voted for modi and his economics will bring on street and stone him ........
He is made India a joke
Vivek • 3 hours ago
GDP is anti national, economy is anti national.
Tamal Chaudhuri • 4 hours ago
5% is fudged. In reality we are at 3.5% if we compare to the old method. Gloom has set in as Lotus blooms
Abhijit Sharma • 5 hours ago
This is the worst go nment. Economy is in crisis, no jobs, high food inflation, extortion in the name of taxes, challan, rapes
Siddhartha • Bengaluru • 6 hours ago
And modi is not worried. He is enjoying, laughing, and thinking new plan to fool Indian citizens .
Rajender • New Delhi • 4 hours ago
The condition of economic is very grim
Anthony • goa • 3 hours ago
This number is fake, its gone below 4 percent
Rajesh Vyas• 2 hours ago
who knows the real figure?
Arun • 3 hours ago
No problem. Build temple implement CAA NRC. GDP will be back :P.
Iqbal • Mumbai • 4 hours ago
with tension in the middle east, thanks to modi's friend trump ,oil prices are set to soars, the economy will be below 5% by year end.
srini • hyd • 2 hours ago
That's why Modi brought CAA.
Anjan Kesh • 3 hours ago
Citizens get the govt they deserve. You voted power hungry crooks like modi and goons like shah, what did you expect?
Hemanta • 5 hours ago
India need to be solved this problem very quickly with great efforts.
Dyubm • 3 hours ago
India has become a circus now. Enjoy it