The finance ministry on Saturday announced that Quarter 2 (July-September) Gross Domestic Product (GDP) has slipped to 4.5% which means every Indian has become poorer by Rs 5,000 per person. The previous low of 4.3% was seen during January-March 2012-13. The government ‘s statement came a day after Finance Minister Nirmala Sitharaman herself admitted that the economy is facing a slowdown but there’s no danger of a recession taking hold. The finance minister assured the Rajya Sabha that the government will make policy changes required.
The Q2 GDP data is out now, the GDP has declined again and recorded 4.5%. In Quarter 1 (April-June 2019), it was recorded at 5% which was itself a drop. It was expected that this quarter would bring better performance, unfortunately, the GDP is going down. According to data of 2018’s Q2, GDP growth then was 7.1 percent, the statistics released today are cause for alarm.
Here are major highlights from Q2 GDP:
1. The GDP for Q2 2019 is 4.5 percent, it has dropped 0.5 percent from Q1.
2. GDP faced the biggest downfall in private final consumption expenditure in the private and government sectors. In the private sector, it was recorded Rs 27.28 lakh in quarter 2 last year but for the same period this year, it was Rs 29.42 lakh. Similarly, it grew in the government sector as well, it was estimated at Rs 6.92 lakh in Q2 2019-2020 whereas in 2018-19 it was Rs 5.82 lakh.
3. Indices of 8 core sectors declined to 0.6 percent. In October 2019, it was at 5.8 percent and now it has been calculated to be 5.2 percent. The coal industry which was known as the strongest core sector of India faced 17 percent of the decline in the last few years.
4. Financial, professional services, and real estate have grown at the rate of 5.8 percent when it 7 percent in the previous fiscal’s corresponding period.
5. According to the current data, economists say the average Indian has become poorer by Rs 5,000 per person.
Monthly Review of Accounts of Union Government of India up to the month of October 2019 for the Financial Year 2019-20.
Details here: https://t.co/d8H54WCd6r
— PIB India (@PIB_India) November 29, 2019
The Congress has lashed out at the ruling BJP and slammed it for the continuous fall in the GDP. This was the sixth continuous quarter where GDP has fallen. In 2018 Q1, the GDP was growing at 8 percent, in Q2 it dropped to 7 percent, in Q3 it was at 6 percent, in last year’s final quarter, the GDP was at 5.8 percent. In 2019 Q1, the GDP had fallen from 5.8 to 5 percent and now in Q2, it is only 4.5 percent.