Why Is The GDP Down?

by GoNews Desk 1 week ago Views 1242
Why Is The GDP Down?
ads
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.

Also Read: 'Frozen 2' Set To Smash 'The Lion King' Record

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