The Hush Post | 5:40 pm | One-minute read |
Finally, someone from the government has admitted that the country’s economy is in shambles. Reserve Bank of India (RBI) Governor Shaktikanta Das has confessed that India is going through an economic slowdown. Earlier, finance minister Nirmala Sitaraman and union commerce minister Piyush Goyal had to face embarrassment when they put forth some “vague” reasons defending the economy.
The RBI Governor has said that India’s gross domestic production (GDP) growth at 5 per cent has come as a surprise and is much worse than all predictions. In an interview to CNBC-TV18, Shaktikanta Das stated that getting growth back on track should be the highest priority of the government.
He said, “We (the RBI) predicted growth at 5.8 per cent. Nobody predicted less than 5.5 per cent. The number came as a surprise, worse than all predictions”.
Notably, the RBI Governor’s statement comes at a time when the Indian economy has shown the lowest growth in six years – a dismal 5%. Nominal GDP growth, a measure of GDP without adjusting for inflation, rose just 8 per cent, lowest in the last 7 years, indicating a deep slowdown.
Consumption, the bedrock of growth in the past few years, collapsed to an 18-quarter low of 3.1 per cent from 10.6 per cent in the March quarter. The slowdown has majorly affected the auto sector.
During the interview, Das also indicated that the central bank had been warning about the slowdown since the beginning of the year.