New Delhi, September 2: In what signals the further deepening of economic slowdown, the numbers released for July by the Central Statistics Office (CSO) has pointed to a major dip in the growth rate of eight core sectors. The combined growth has receded to 2.1 per cent, as compared to 7.3 per cent in the corresponding period last year. GDP Growth Slips to 5% in April-June Quarter, Down From 5.8% in Q4 of Last Financial Year
The eight core sector industries include coal, crude oil, natural gas, refinery products, fertiliser, steel, cement and electricity. As per the Q1 data, output of coal, crude oil, natural gas and refinery products recorded negative growth in July. Their growth had expanded to 7.3 per cent in the same period last year, when the government had claimed that the side-effects of demonetisation and GST roll-out have been negated.
The CSO had last week released the overall growth rate figures for the first quarter of 2019-20, pointing towards a downslide to 5 per cent from 5.8 per cent in Q4 of last financial year. Nirmala Sitharaman Quashes Manmohan Singh's Claims on GDP Data, GST Collections Decline
As the numbers fuel anxiety about a potential recession in the Indian economy, which may lead to massive job loss, former Prime Minister Manmohan Singh issued a warning to the government on Sunday. In a video released by the ex-PM, he said the nation will face a period of massive job loss and clampdown of informal sector if the Centre does not take immediate measures to address the crisis. Manmohan Singh Blames 'Mismanagement' by Modi Government For Economic Slowdown
"Last quarter's GDP growth rate of 5 percent signals that were in the midst of a prolonged slowdown. India has potential to grow at a much faster rate but all-round mismanagement by Modi government has resulted in this slowdown," Manmohan Singh said.
Finance Minister Nirmala Sitharaman has, however, rebutted the criticism, alleging that certain sections want to depress the nation by projecting the cyclic economic slowdown out of proportion.
(The above story first appeared on LatestLY on Sep 02, 2019 06:00 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).