{"id":35342,"date":"2018-10-31T16:35:40","date_gmt":"2018-10-31T11:05:40","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=35342"},"modified":"2018-10-31T16:35:40","modified_gmt":"2018-10-31T11:05:40","slug":"slowing-down","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/slowing-down\/","title":{"rendered":"Slowing down:\u00a0"},"content":{"rendered":"<p><a href=\"http:\/\/indianexpress.com\/article\/opinion\/editorials\/gdp-arun-jaitley-economic-survey-slowing-down-4824541\/\"><span style=\"font-weight: 400;\">Slowing down:\u00a0<\/span><span style=\"font-weight: 400;\"><br \/>\n<\/span><\/a><b>Context:<\/b><\/p>\n<p><b> I<\/b><span style=\"font-weight: 400;\">ndia\u2019s GDP growth tumbled to 5.7% in the \u00a0first quarter, April to June of this fiscal, , is the slowest in 13 quarters.<\/span><\/p>\n<p><b> Introduction:<\/b><\/p>\n<p><span style=\"font-weight: 400;\"> Data released by the Ministry of Statistics show that GDP slowed to 5.7% in the quarter ended June 30, from 7.9% in the corresponding period a year ago.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The data also showed that the sectors that would have been affected by demonetisation were the ones that took the biggest hit.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">India, which had the mantle of world\u2019s fastest growing major economy, has now slipped below China in terms of growth. Our northern neighbor reported a growth rate of 6.9% for the last quarter<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Sectors that have performed badly:<\/span><\/p>\n<p><span style=\"font-weight: 400;\"> Growth in manufacturing slumped to 1.2 per cent in the quarter to June \u2014 a five-year low compared to the earlier quarter.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">According to India\u2019s chief statistician owed to a high level of inventory de-stocking, while mining contracted by 0.7 per cent.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">Agriculture growth too was weak.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The construction sector grew by 2per cent after a negative March growth.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\"> Sectors that have registered strong growth:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Financial services grew at 6.4% while trade, hotels, transport, and communication grew 11%.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0\u00a0\u00a0<\/span><span style=\"font-weight: 400;\">Defence services showed an impressive growth of 9.5%.<\/span><\/li>\n<\/ul>\n<p><b> Government spending:<\/b><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The government spending is accounted for one-third of GDP growth in this quarter and reflected in the government\u2019s fiscal deficit in the April to July period which is now 92% of the Rs 5.46 lakh crore estimated for FY 18.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Background:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">The Economic Survey had said that several deflationary impulses were weighing on the economy and that growth was likely to miss the upper band of the GDP forecast of 6.75 per cent to 7.5 per cent for FY 18.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Key points:<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Finance Minister Arun Jaitley emphasizes the need to work more on policy and investment in the next few quarters.<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The current slowdown started in mid-2016 with demonetisation \u00a0\u00a0accentuating it, with demand being squeezed.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Slowdown also comes at a time of farm distress in large swatches of the country, lower demand and capacity utilization, weaker external demand and when firms are deleveraging- a process which can stretch long and prove extremely painful for the economy.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The gross fixed capital formation or GFCF, a measure of investment, rose 1.6 per cent year-on year .<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The GFCF has been on the decline over the last few years, sliding to 26.9 per cent of the GDP in FY 17 compared to 29.2 per cent in the earlier fiscal.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Slowing down:\u00a0 Context: India\u2019s GDP growth tumbled to 5.7% in the \u00a0first quarter, April to June of this fiscal, , is the slowest in 13 quarters. Introduction: Data released by the Ministry of Statistics show that GDP slowed to 5.7% in the quarter ended June 30, from 7.9% in the corresponding period a year ago.&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/slowing-down\/\">Continue reading <span class=\"screen-reader-text\">Slowing down:\u00a0<\/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-35342","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704840119},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35342","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=35342"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/35342\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=35342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=35342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=35342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}