GDP at 4.5% in Second Quarter(July-September), Lowest in 25 Quarters
The Gross Domestic Product(GDP) of India has now been declining for five straight quarters in a row, falling by 0.5 percent from the first quarter of 2019-20 to 4.5 percent in the second quarter, registering the slowest and lowest growth rate since the final quarter of 2012-13.
The further decline in the GDP during the quarter is due to the slowdown of the manufacturing sector which resulted due to slowdown in investments, exports, consumption of goods and services, lack of demand and credit growth in the market.
The Government has taken measures in the recent months that include merger of stressed banks, Rs 70,000 crore infused in public sector banks, incentives to banks to increase the credit outflow, special fund to real estate sector, start-ups exempted from angel tax, super-rich surcharge withdrawn which was imposed on foreign investors and specially reduction in corporate taxes.
The Reserve Bank of India has also reduced the lending rate fives times this year.
Category: Economy & Banking Current Affairs