Veteran Congress leader and former Union Finance Minister P Chidambaram, on Saturday, stated that the Indian economy is losing steam taking into consideration the fall in quarterly GDP figures. His views came right after the country’s GDP development slowed additional in the December quarter as pent-up demand eased and weakness in the manufacturing sector continued. India registered four.four per cent year-on-year development in the October-December quarter, down from six.three per cent in the July-September quarter. The figure stood at 13.five per cent in the April-June quarter final year.
Though sharing his views at India These days Conclave, Chidambaram stated, “My estimate (for India’s GDP development) is amongst four.1 per cent and four.three per cent for the fourth quarter. So, it is a declining quarterly development price, which signifies the Indian economy is losing steam.”
Will India continue to develop more quickly than other economies in the globe? Chidambaram added that China, when it grows at three per cent or three.five per cent, will nevertheless add various occasions the annual output than India developing at 7 per cent.
“China is 5 and a half occasions bigger than India. Thus, the relevant quantity is the per capita revenue which shows that we are nevertheless a really poor nation,” he stated.
On the other hand, Neelkanth Mishra, Equity Strategist, Credit Suisse and advisor to the Prime Minister is bullish on the GDP development and the Indian economy. “India is noticed as a steady economy amid the ongoing international monetary turbulence. It will continue to attract foreign investors which can bring expertise and technologies,” he stated adding the expectations of India’s GDP development should really be that it will contribute to 12-15 per cent of incremental development more than the subsequent 5 years.
He also added that the quarterly GDP numbers are very inaccurate. “As per NSO (National Statistical Workplace) numbers, the fourth quarter GDP development is going to be six per cent. “Everyone expects FY24 GDP to be six per cent plus. But, I consider it should really be 7 per cent. Sales of the BSE 500 firms also show that there is certainly no slowdown in output,” Mishra added.
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