Why Is The GDP Down?

by GoNews Desk 4 years ago Views 3329

Why Is The GDP Down?
India’s Gross Domestic Product (GDP) growth slumped to a six-year low of 4.5% during July-September, revealed the Government on Nov 29. 

According to data released by the Ministry of Statistics and Program Implementation, the second-quarter GDP growth rate was 4.5% as against 7% during the corresponding period of last fiscal (2018-19). This is the lowest growth rate after the fourth quarter (January-March) of fiscal year 2012-13 when the GDP growth rate was 4.3 percent. Also, this is the sixth successive quarter of growth rate declining.

Here are 10 points showing the crisis that the economy is in - 

1 - Rail freight earnings moved to negative growth in August which were 4.3% at the start of the quarter (in April)

2 - Electricity consumption has gone down to negative at the end of the quarter. 

3 - Industrial Production has also come down to negative in September 

4 - Slump in diesel consumption is a clear indicator of a slowing economy

5 - Exported has also contracted to negative in the second quarter of 2019

6 - As demand fell, there was also a decline in imports. From 6.0 in April, imports have been hovering in negative since June.

7 - India generated 12.4% less energy in October 2019 as compared to 2018.

8 - Country's Power plants are operating at less than half their production capacity while few have decided to stop production

9 - A significant decline in coal production witnessed in October 2019.

10 - Last but not least, the country saw a dip in petroleum production during second quarter of 2019

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