Economic Slowdown: Growth in Eight Core Industries Dips in November 2019 by 1.5% as Against Same Period Last Year
In view of the plunging manufacturing and gross domestic production rate, the Reserve Bank of India (RBI) has lowered the growth estimates for the financial year 2019-20. After projecting an annual growth rate of 7.4 percent in February this year, the central bank has repeatedly slashed the GDP forecast, bringing to 5 percent in its latest revision.
New Delhi, December 31: In what signals the deepening of economic slowdown, the growth in eight core industries marked a significant dip in November 2019, as compared to the same period last year. The combined index of eight core sectors - comprising of coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity - stands at 126.3 points, as per the government data released on Tuesday. The numbers mark a 1.5 percent decline year-on-year basis.
As compared to October 2019, the core sector growth index has plunged by 0.7 points. The Central Statistics Office (CSO) data released on November 29 showed that combined growth of the key sectors stood at 127.0 points. The consecutive slide in core sector growth raises concern on whether the economic slowdown is converting into a recession. Economic Slowdown: IMF Calls for Urgent and Quick Action by Indian Government to Tackle Slowdown.
Update by ANI
Finance Minister Nirmala Sitharaman has reiterated that the current phase of downslide in the Indian economy is "cyclic" and the growth rate would resume its upward trend in the near future. Experts are, however, unsure whether a revival is on the cards. Former Chief Economic Advisor Arvind Subramanian said the Centre requires a long-sighted approach to improve the state of economy.
In view of the plunging manufacturing and gross domestic production rate, the Reserve Bank of India (RBI) has lowered the growth estimates for the financial year 2019-20. After projecting an annual growth rate of 7.4 percent in February this year, the central bank has repeatedly slashed the GDP forecast, bringing to 5 percent in its latest revision.
(The above story first appeared on LatestLY on Dec 31, 2019 05:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).