India’s economic output (amount of goods or products produced in a certain period of time, in this case for money) has gone down to its lowest in six years. This signifies an all time economic slowdown. (See articles- Economy:Is it Sinking? For more…)
Severe inflation has forced the RBI to cut interest rates even lower, making it the most agressive bank in Asia, as of now. The economy has not expressed such a bad fall since November 2012, where it fell by a rate of 1.7%. Now, it has contracted by 1.1%, compared to a 4.6% growth in the last month.
Tax collection lows have also been experienced due to the slowdown. The GST tax has seen a 19% decline in September from its collection. Our fiscal growth has now fallen to 6%, which is below the required 7% for our fiscal year.
What do you think? Will our economy bounce back in time? Stay tuned to find out!