News Analysis India

Tag: India GDP Growth

  • ‘Will work for it’: Finance Minister Sitharaman bullish on double-digit GDP growth

    By PTI

    HYDERABAD: Hoping for double-digit growth in GDP in this financial year, Union Finance Minister Nirmala Sitharaman on Saturday said the nation is on a strong wicket when compared to others, and is responsive in terms of extending hand-holding to the required sections.

    Speaking to media persons here, she quoted reports saying the country has zero per cent chance of slipping into recession.

    “I hope for (double-digit growth). We will work for it. So if you’re not on the verge of recession, it also gives me the confidence that if you are constantly responsive in terms of the sections which need hand-holding, in terms of the boost that we have to give to the economy,” she said when asked if she expects double-digit growth in the gross domestic product (GDP) for the year.

    Recent figures released by the Centre indicated that the nation clocked 13.5 per cent growth in GDP in the first quarter of the current financial year.

    It was 20.1 per cent a year ago.

    Sitharaman further said some may argue that the high growth rate is because of the low base.

    “Compared to economies we are talking about, we are on a sound wicket. We are literally the fastest growing economy,” she said.

    Referring to the World Bank and IMF reports, the Union minister said she was also taking into consideration the fact that economies which were far more developed than India and comparable with the country, are on the verge of recession.

    To another query on freebies, she said everybody should participate in the debate on the issue.

    “We should become a party to the discussion. Because if you are giving something free means somebody is paying for it,” Sitharaman said.

    She suggested that any government after coming to power must assess its financial situation in terms of tax revenues and others, and make provisions before offering freebies.

    HYDERABAD: Hoping for double-digit growth in GDP in this financial year, Union Finance Minister Nirmala Sitharaman on Saturday said the nation is on a strong wicket when compared to others, and is responsive in terms of extending hand-holding to the required sections.

    Speaking to media persons here, she quoted reports saying the country has zero per cent chance of slipping into recession.

    “I hope for (double-digit growth). We will work for it. So if you’re not on the verge of recession, it also gives me the confidence that if you are constantly responsive in terms of the sections which need hand-holding, in terms of the boost that we have to give to the economy,” she said when asked if she expects double-digit growth in the gross domestic product (GDP) for the year.

    Recent figures released by the Centre indicated that the nation clocked 13.5 per cent growth in GDP in the first quarter of the current financial year.

    It was 20.1 per cent a year ago.

    Sitharaman further said some may argue that the high growth rate is because of the low base.

    “Compared to economies we are talking about, we are on a sound wicket. We are literally the fastest growing economy,” she said.

    Referring to the World Bank and IMF reports, the Union minister said she was also taking into consideration the fact that economies which were far more developed than India and comparable with the country, are on the verge of recession.

    To another query on freebies, she said everybody should participate in the debate on the issue.

    “We should become a party to the discussion. Because if you are giving something free means somebody is paying for it,” Sitharaman said.

    She suggested that any government after coming to power must assess its financial situation in terms of tax revenues and others, and make provisions before offering freebies.

  • People hit by ‘double whammy’ of low growth, high inflation: Congress on third quarter data

    By PTI
    NEW DELHI: Attacking the government over the state of the economy, the Congress on Friday said the people have been hit by the double whammy of low growth and high inflation for which the Modi government’s “gross mismanagement” is responsible.

    The attack came after the Indian economy, which had been contracting for two quarters in a row, recorded a positive growth of 0.4 per cent in the October-December quarter, mainly due to good performance by farm, services and construction sectors, official data showed on Friday.

    Congress’ chief spokesperson Randeep Surjewala said the third quarter GDP data proves yet again that fault lines in the Indian economy are more visible than ever before.

    The economy has grown by a mere 0.4 per cent in the third quarter of financial year 2020-21, which is far below estimation, he said.

    “What continues to be an area of concern, however, is the advance estimates for the entire financial year. Central Statistics Office (CSO) has lowered GDP growth rate for FY2020-21 from its previous estimated minus 7.7% to now minus 8%,” Surjewala said.

    It is also important to point out that Q1 GDP has now been revised lower to minus 24.4 per cent from the previous reported contraction of minus 23.9 per cent, he said in a statement.

    “Clearly, the ill planned and poorly executed lockdown took a huge toll on the economy, which was already suffering from the twin body-blows of demonetisation and the ill-conceived GST,” the Congress spokesperson alleged.

    A detailed analysis of the GDP numbers also proves the misplaced and irrational exuberance in India’s stock markets, he said.

    Pointing out that private consumption expenditure at Rs 21.2 lakh crore is down by 2.4 per cent on a year-on-year basis, Surjewala claimed that it is clear that while demand for goods is picking up, the demand for services, which is the biggest contributor to the GDP, is trailing and is unlikely to revive for a few quarters in the future.

    “Contrary to claims, the Modi government has spent a lot less than what is needed to revive the Indian economy. Public administration in Q3 has contracted by minus 1.5 per cent,” he said.

    “Q3 GDP growth numbers carry a big lesson for the insensitive Modi government. Agriculture, which has grown at 3.9 per cent in Q3, has continued to hold steady and which is why the government should stop treating the farmers so cruelly and insensitively,” the Congress leader said It should listen to the woes of millions of farmers agitating for justice and resolve their plight by rolling back the three “anti-agriculture black laws”, Surjewala said.

    “We have truly been hit by the double whammy of low growth and high inflation for which gross mismanagement and the unpardonable failure of leadership of Modi government is solely responsible. Let us hope that an ignorant PM and FM finally realise the truth,” he added.