State of the Indian Economy has been saved
State of the Indian Economy
A quick snapshot
Weak demand driving slowdown
GDP fell for five consecutive quarters; significant risks loom ahead
- Low GDP growth in Q2 FY 2020 confirms that the current slowdown is the longest since liberalisation.
- The decline in growth, at 4.5 percent, was primarily driven by weak:
- Private investment (growth nosedived to 1 percent)
- Consumption expenditure (increased by just 5.1 percent)
- Exports (contracted by 0.4 percent)
- Growth has primarily been supported by government spending, which increased by 15.6 percent this quarter.