APD | India: 4.7% growth in economy in September quarter

By APD writer Rishika Chauhan

According to a poll conducted by the Reuters, India’s economy grew by 4.7% in the September quarter. This marks a slow down as the recorded growth was 5% in the last three months and 7% during the same months in 2018.

The report further said, “If the latest figure for expansion of gross domestic product is 4.7% or less, the quarter will have registered the slowest expansion in 26 quarters, since 4.3% in January-March 2013.”

The slow growth has been a cause of concern especially because the increase in demand that usually takes place in the festival periods has also failed to revive the economy.

Devindra Pant, chief economist at Fitch arm India Ratings & Research explained, “Agrarian distress and dismal income growth so far, coupled with subdued income growth expectation in urban areas, have weakened consumption demand considerably.”

Meanwhile it was also suggested that the government led by Prime Minister Narendra Modi is taking various measures to improve the situation and help the economy grow at a faster rate.

Experts have predicted that to provide a boost to the economy the Reserve Bank of India could reduce its repo rate in its next meeting which is scheduled for the first week of December.

(ASIA PACIFIC DAILY)