In a blow to the BJP government and Finance Minister Nirmala Sitharaman, India’s Gross Domestic Product (GDP) growth rate for the second quarter of the ongoing financial year slipped to 4.5%. This is the lowest since the January-March quarter of 2013.
The nominal GDP growth for the second quarter also fell to 6.1% as compared to 8% in the previous quarter. The GVA growth also dipped to 4.3% in comparison with 4.9% in the first quarter of the ongoing financial year.
The numbers come days after the Finance Minister on Wednesday announced that though the economy was facing a slowdown, there was no fear of recession.
Ahead of the release of the numbers, government data released showed that the output of eight core infrastructure industries contracted by 5.8% in October, indicating the severity of the economic slowdown. This is the fifth consecutive quarter to have witnessed a fall.
The news was met with dismay on social media. And netizens dealt with the harsh economic reality of the country with some equally dank memes.
लाल पोटली ने सब लाल कर दिया हैWe want briefcase back #GDP— Sakshi Joshi (@sakshijoshii) November 29, 2019
Prime Minister Narendra Modi's government has taken several steps, including cutting corporate tax in September, to boost investments and bolster economic growth.
However, ongoing agrarian distress and dismal income growth so far, have weakened the consumption demand considerably. Even the festive demand has failed to revive it and this is reflected in the current data of non-food credit, auto sales and select fast moving consumer goods.