Indian economy faces the worst setback under Indian PM Narendra Modi
NEW DELHI: The fastest emerging economy of the world has grounded under Narendra Modi’s rule, according to the official data released here on Friday.
Indian economy expanded at its weakest pace in more than six years with growth at 4.5 percent for July to September three months, while the economy’s growth rate in the same period last year remained seven percent, official data showed.
The growth rate of the economy also remained lower than April to June 2019 three month, which was five percent.
The economists were of the opinion that the economy is passing through a declining growth momentum and there is no easy way out, principal economist at Fitch India Ratings said.
The pace of economic growth fell below 5 percent for the first time since the quarter ending March 2013 when it measured 4.3 percent.
That slowdown has been visible across the country including in the low growth of utilities, including electricity – 3.6 percent, down from 8.7 percent a year earlier – indicating a slowdown in manufacturing, economists said.
The auto sector is undergoing the slow down with over 13 percent with crash in demand for vehicles.
The Indian economy will remain under the same stress in the remaining period of the ongoing year, economists opined.
The slowdown comes on the back of controversial reforms by the Modi government in the past few years including a sudden clampdown in November 2016 on more than 80 percent of the currency in circulation in a bid to crack down on the black market, followed by a massive sales tax overhaul the next summer that created a lot of confusion and compliance burdens, especially for small traders who account for about a third of the economy. -APP/AFP