India’s GDP Growth Slips Back To 2017 Level

After the World Bank, now the Reserve Bank has said that the country's economy is expected to shrink by 9.5 per cent in FY 2020-21. Earlier, the World Bank had estimated India's economy to shrink by 9.6 percent. According to the report, due to the COVID-19 pandemic, the country has lagged behind on the development front.

The economic growth rate already hit a historic low of about - 24%. Whereas, the latest RBI report shows that India's current economy has slipped back to 2017 level.

For example, in fiscal year 2017-18, the GDP of the country was Rs 131.75 lakh crore, now in FY 2020-21 it still stands at Rs 131.82 lakh crore. Simply put, the development of the country gained nothing in these three years.

Whereas in 2018, the GDP size of the country was estimated at Rs 139.81 lakh crores and in 2019, it is Rs 145.65 lakh crores. If we look at the figures, it is clear that the economic growth rate of the country has seen a steady decline in these periods.

The country's economic growth rate was 8.26 per cent in FY16, which fell to 7.04 per cent in 2017. In 2018, it went down to 6.12 percent and further decreased to 5.02 percent in 2019. While RBI Governor Shaktikanta Das has stated that the projected growth rate in the financial year 2020-21 is estimated to be - 9.5%.

On comparing the growth rate in the first quarter of the FY21 to that of FY14, then the economy of the country has gone bankrupt on this front too. In the first quarter of the financial year 2020-21, the country's economic growth rate has hit the lowest in six years.

In six years, the GDP growth in the first quarter of FY14 was Rs 25.6 lakh crore, which has reached an estimated 26.9 lakh crore in FY20. At the same time, the GDP growth rate in the first quarter of FY 2013-14 has gone up to 10.9 per cent as against -23.9 per cent in the first quarter of FY 2020-21.

It is clear from the data that the Modi government of the country has failed badly on the economy front. Experts believe that the government needs to take concrete steps to strengthen the economy.