In fact, it cannot be straightaway termed as plummeted as the Gross National Product (GDP) was 7% same quarter last year as compared to the latest 4.5 %. A fall of half percent though worrisome cannot throw pessimism around as the economy on sound variables and parameters is bound to recoil to reach or touch the projections of the World Bank for the fiscal 2019-20 being at 7.5% but it may not touch below 6% in an environment of global slowdown. Even Reserve Bank of India has trimmed our GDP growth around 6.1%.
Larger dimensions have got to be seen affecting the growth in our GDP as domestic cumulative demand is not picking up despite the government spending on developmental projects. However, another factor is that consumption is low while investments and exports need to pick up . On the other hand industrial production has fallen as compared to the previous year. Besides, farm sector too has not picked up this quarter mainly due to devastation of crops by untimely rains. While trade tensions between the US and China have affected our economy , inflation has by far remained under control. Credit allocation by Banks and strengthening their financial base by waging a war on NPAs would prove as a boosting factor. Despite some aspects needing pointed attention , if not elevated concern, the fact remains that India is one of the fastest developing economies with a huge market which should induce more of FDIs.
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