India grew at 5.8% in the last quarter, whereas China grew at 6.4% in the same period. This is India’s lowest in the last four years. The Indian economy has also fallen behind China for the first time in the last 2 years. This was also accompanied by a high unemployment rate of 6.1%. These statistics were released when Prime Minister Narendra Modi started his second term.
Reviving demand and economic activity are among the toughest challenges that face the new government and the finance minister Nirmala Sitharaman. The ministry of statistics and program implementation has cut the growth estimated for the financial year that ended on March 31 at 6.8% compared to an earlier projected rate of 7 %. It is expected that in the new budget for the country, there could be tax cuts to boost demand and investments. RBI is also expected to cut interest rates in June 4-6 policy meeting.
How can India get back on a fast growth path? Leave your comments below….