India is experiencing a growth slump which is the longest since the year 2012. It has grown to become an accelerating concern among the nation’s policy makers who think that this is going to be a tough job to reverse the heavy downfall.
Teresa John is an economist at the Nirmal Bang equities Private Limited located in Mumbai. Recently she has mentioned that, in the recent years, India’s growth has been witnessing a steep downfall below the long persisting 6.6% trend for two simultaneous quarters. This further lets us conclude that India is essentially experiencing quasi recession. She has also added in the report which was published on Tuesday, that the earliest indicators pointing out that growth of the country will remain difficult to
The standard general definition of recession as stated in micro economy is the shrinking of annual GDP back to back for two simultaneous quarters. Not only that, a prominent decline in economics activities throughout a span of quite a few months is another indication of recession which is often used to describe the situation. In a country like India that only offers year on year calculation of the annual output, the sale of automobiles have suddenly hiked very quickly and has grown the most in the past two decades which has now led to Hindustan Unilever chairman warning about the fact that the consumer goods which are produced by his company might be recession resistant but yet not recession proof.
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According to the official data reports produced on Friday it can be shown that the GDP (Gross Domestic Product) of India which is Asia’s third ranked economy; grew only by a minor 5% from the month of April to June throughout past one year from previous year. This in itself is even lower than what was estimated by a total of 39 economists who were followed by Bloomerang. That is not all. The GDP of India has experienced its lowest state still now in a total of 6 years. The drastic slowing of growth throughout consecutive five quarters has led to the marking of slump which can be denoted as the longest since 2012.
Economists from Nirmal Bang are still hoping that a GDP growth can be expected in order to bottom out by the ending of the September quarter but quoted that a government spending boost which is counter cyclical in nature is necessary for this to happen.