Indian economy recorded its slowest growth in 6.5 years during the September quarter in spite of all government efforts to mitigate slowdown.
India’s Gross Domestic Product (GDP) grew at a meagerly 4.5-pc in the July-September quarter of this financial year, according to the data by National Statistical Office reported on Friday, 29 November 2019. this is the lowest mark in 26 quarters, since 4.3 pc in January-March 2013.
The gross value added was recorded at 4.3pc, as against a common estimate of about 4.5-pc. During the quarter, govt outlays supported growth by growing at 11.6-pc. Conversely, the financial services sector advanced 5.8-pc, according to the data.
The slowdown appears in the midst of continuing adversity in sectors particularly from real estate, automobiles and non-banking finance, together with a downswing in the global economy.
Amid the constant economic retardation, many feel the RBI, may go for one more slash in the interest rate of 25-bps next week. The Central Bank has thus far, this year, cut rates by 1.35-pc-points to 5.15-pc.
However, the SBI in its latest report pointed out that possible rate cut is supposed to lead to any immediate material revival, rather it might result in potential financial instability.
Meanwhile, the govt said though the growth may have slowed, there is no worry of recession, which is commonly defined as negative growth for two consecutive quarters. Get Financial-Market-Updates by clicking the link/website.