{"id":35341,"date":"2018-10-31T16:35:22","date_gmt":"2018-10-31T11:05:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35341"},"modified":"2018-10-31T16:35:22","modified_gmt":"2018-10-31T11:05:22","slug":"unending-slowdown","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/unending-slowdown\/","title":{"rendered":"Unending slowdown:"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/opinion\/editorial\/unending-slowdown\/article19604584.ece\"><span style=\"font-weight: 400;\">Unending slowdown: <\/span><\/a><\/p>\n<p><b>Context<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">India\u2018s economy continues to decelerate with the government\u2019s estimate for first-quarter gross domestic product (GDP) pegging growth at a 13-quarter low of 5.7% in April-June.<\/span><\/li>\n<\/ul>\n<p><b>Reasons behind the protracted slowdown<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">A slide of five straight quarters from 9.1% in March 2016 is many and varied.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">With little doubt the demonetization exercise combined with the uncertainty around the July 1 adoption of the new indirect tax regime served significantly to dampen economic activity.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">It is still doubtful whether demand for industrial output is going to attain any meaningful strength.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Reserve Bank of India last month said that its industrial outlook survey had \u201crevealed a waning of optimism in Q2 about demand conditions across parameters and especially on capacity utilization, profit margins and employment.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">A look at the sector-specific trends shows that manufacturing expansion in gross value added (GVA) terms has slackened to a near stall at 1.2%.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">This, from 5.3% in Q4 of the last fiscal and 10.7% a year earlier, is a far from heartening sign.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">With capacity utilization expected to weaken this quarter, according to the RBI, and with surveys suggesting that consumer sentiment has deteriorated steadily in August, the auguries for a demand rebound are far from promising.<\/span><\/li>\n<\/ul>\n<p><b>Words of Finance minister<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Finance Minister has acknowledged that the challenge before the government now is to work out both policy and investment measures to boost momentum.<\/span><\/li>\n<\/ul>\n<p><b>What measures can be taken?<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">One option would be to suspend the fiscal road map for a limited period in order to pump prime the economy through increased capital spending by the government.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The risks of fiscal undoing are manifold, especially at a juncture when several State governments have either announced or are contemplating large-scale farm loan waivers, which would push up interest rates and crowd out fresh lending.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Still, there is a thin sliver of a silver lining in the GDP data. The services sector continues to remain buoyant.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Quarterly GVA across this broad wrap up trade, hotels, transport, communication and broadcasting accelerated to 11.1%, from 6.5% in the fourth quarter, faster than the 8.9% posted in the corresponding period last year.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The civil aviation sector saw passenger traffic soaring by 15.6%, and construction activity, a provider of jobs, also ticked up by 2%.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The Finance Minister is on his way to find ways to restore momentum before the tailwinds of low inflation and affordable energy prices start reversing direction.<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span>&nbsp;<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Unending slowdown: Context India\u2018s economy continues to decelerate with the government\u2019s estimate for first-quarter gross domestic product (GDP) pegging growth at a 13-quarter low of 5.7% in April-June. Reasons behind the protracted slowdown A slide of five straight quarters from 9.1% in March 2016 is many and varied. With little doubt the demonetization exercise combined&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/unending-slowdown\/\">Continue reading <span class=\"screen-reader-text\">Unending slowdown:<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-35341","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704840109},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35341","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=35341"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35341\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35341"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35341"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35341"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}