India no longer the fastest growing economy

By APD writer Rishika Chauhan

NEW DELHI, June 1 (APD) - According to recently released gross domestic product (GDP) data, India’s economic growth in the last quarter was the lowest that it has been in the past two years.

Analyzing the data released on Wednesday, the scholars are stating that owing to the slump, India has lost its title of being the fastest growing economy in the world. For the year 2016- 17, the GDP of India’s capital, New Delhi was 7.1 percent, slower than last year’s 8.0 percent.

From January to March, India’s economic growth was 6.1 percent. It was in 2014 that India’s economic growth was 6.0 percent, since then the GDP had picked up and was growing fast.

It was during the same period when Prime Minister’s demonetization decision — to ban old currency notes and introduce new ones, was implemented. While some surveys had stressed that the economic growth had not slowed down, many economists believe that the recently released figures are the closest to reality.

The government has argued that the positive effect of demonetization will be felt in the long run, as the decision was taken to invalidate unlawful or black money. Corruption will be checked and the economy would be digitized as a positive impact of demonetization.

In the meantime, the government has increased public spending, however, the country is believed to be in need of private investments.

(ASIA PACIFIC DAILY)