Asia Times | India's growth slowed during fiscal year 19: Report

While India is in the middle of an aggressive election campaign that fills a very long seven-phase general election schedule, the Finance Ministry released a report saying that the economy slowed slightly during the last fiscal year (2018-19).

The report, published by the Department of Economic Affairs, cited the slowdown in private consumption growth, the small increase in fixed investment and weak exports.

The government lowered its economic growth estimates for the first and second quarters of fiscal year 19 to 8% and 7%, respectively, from its previous estimates of 8.2% and 7.1%, respectively .

The report admitted that the agricultural sector is facing a slowdown and that it will be difficult to reverse it. He also said that maintaining industrial growth would be a challenge.

The gradual rise in retail sales inflation is also a concern, as well as the appreciation of the exchange rate of the currency, which could be a challenge for exports, the report added.

However, the report indicates that the current account deficit in relation to the gross domestic product is expected to have decreased in the January-March quarter of fiscal year 19, which would limit leakage of growth momentum due to budget deficit was also reduced to the target of 3%.

In addition, an increase in foreign exchange reserves in the fourth quarter of fiscal year 19 due to an improvement in the trade balance has increased import coverage for the economy, the report says.

In the third quarter of fiscal year 19, the country's GDP grew 6.6%, its lowest level in six quarters, due to the weak expansion of agriculture, manufacturing and manufacturing. State expenditure. However, investment activities continued to grow at a steady pace.