India’s GDP declined during the three-month period Oct – Dec 2018. It is the lowest growth rate of recent period. What does it imply?
GDP (gross domestic product) measures value of goods and services produced in the country. Three key sectors contribute to GDP:
• Farming and related sector (rice, wheat, cotton, sugarcane, milk, meat, eggs, fish, etc.
• Industry (steel, cement, electricity, clothing, machinery, automobiles, etc.)
• Services (banking, insurance, trading, government administration, etc.)
Higher GDP growth is always welcome. It indicates rising incomes of the people. In contrast falling growth rate suggests economic activities are slowing.
To improve GDP growth appropriate policy changes are necessary. So, let us watch what actions our policy makers would now undertake. What do you think? Tell us in the comments below…