State of the Indian Economy


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.

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