The Modi government has suffered a setback on the economic front. The country's growth rate has declined. In the first quarter (April-June), the growth rate has come down from 5.8 percent to 5 percent. If compared on an annual basis, there is a decline of around 3 percent. A year ago in the same quarter, the GDP rate was 8 percent. The decline in manufacturing activity and decrease in agricultural production in the last quarter had a major impact on GDP growth.
Modi Raj Failed on Economic Front
This is the fastest pace in any one-quarter of Prime Minister Narendra Modi's government. About 7 years ago in the UPA government, GDP figures reached this level in any one quarter. In the first quarter of FY 2012-13, GDP figures were at a low of 4.9 percent. Let us know that the RBI has reduced India's GDP estimate to 6.9 percent for the financial year 2019-20. The GDP was earlier estimated to be 7 percent for the current financial year.
Condition of sectors
Talking about the sector, the manufacturing sector has grown at a mere 0.6 percent compared to 12.1 percent in the last financial year (2018-19). At the same time, the agriculture and fishing sector has grown at a rate of 2 percent compared to 5.1 percent in the first quarter of the last financial year.
Talking about the construction sector, there was a growth of 5.7 percent, a decline of over 3 percent compared to 9.6 percent in the first quarter of the last fiscal. Financial, real estate and professional services 6.5 percent in the first quarter of the last financial year. Compared to 5.9 percent. There has been a slight rise in other sectors including electricity, gas, water supply.
These figures have come at a time when rating agencies around the world are reducing India's GDP estimate. Recently India Ratings and Research Private Limited has also reduced India's annual GDP growth estimate from 7.3 percent to 6.7 percent. The agency believes that the economy may remain sluggish for the third year in a row due to reduced consumption, monsoon rains less than expected, reduced manufacturing.
At the same time, credit rating agency Moody's has predicted India's GDP growth to be 6.2 percent for the year 2019. Earlier, Japanese brokerage company Nomura had said that India's GDP has been slowed down due to sluggishness, low investment in service sector and decline in consumption. According to Nomura's report, consumer confidence is declining and foreign direct investment is declining.
Significantly, the Modi government has set a target of making the country a $ 5 trillion economy in the next five years, but experts say that it should have a growth rate of 9 percent annually for several consecutive years.
Country undergoing economic slowdown
Let us tell you that there is a phase of lethargy in other sectors including automobiles of the country. There is a steady decline in production and sales in the auto sector. The jobs of millions of people have gone there. Similarly, FMCG and textile sector are also going through the situation like recession.
