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LATEST NEWS UPDATES | GDP Growth Rate Slump: Another Blow to Modi Govt's Economic Growth Story -AK Bhattacharya

GDP Growth Rate Slump: Another Blow to Modi Govt's Economic Growth Story -AK Bhattacharya

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published Published on May 30, 2020   modified Modified on May 31, 2020

-TheWire.in/ Business Standard

The rate of growth for India’s GDP has just about halved in just three years.

New Delhi: The Narendra Modi government’s economic growth story has suffered yet another huge knock. Along with that has come the official admission that the government’s fiscal deficit last year was as large as 4.6% of gross domestic product (GDP), much wider than the 3.8%provided in the Budget presented in February earlier this year.

On the economy front, the provisional estimates released on Friday showed that the rate of growth in India’s GDP fell steeply to 4.2% in 2019-20 from 6.1% in 2018-19.

Look at it another way, the rate of growth for India’s GDP has just about halved in just three years – from 8.3% recorded in 2016-17, the year of demonetisation. There was no respite in 2017-18, either, when the GDP grew by only 7%.

The fall in the growth rate in 2019-20 would have been sharper, but for a rebound in agriculture and government expenditure. Agriculture growth bounced back at 4%, almost double the rate in 2018-19, and public administration, defence and other services saw double-digit growth of 10%, compared with 9.4% in 2018-19.

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TheWire.in/ Business Standard, 30 May, 2020, https://thewire.in/economy/gdp-growth-rate-slump-another-blow-to-modi-govts-economic-growth-story


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