On Thursday, The Central Statistics Office (CSO) released the Gross Domestic Product (GDP) figures which trigger an alarming situation for the government of India. India’s Gross Domestic Product (GDP) growth for the first quarter (April-June) of the financial year 2017-18 came in at a dismal 5.70 per cent.
The Q1 GDP has hit its 13-quarter low (3 Year low). Core sector growth data slowed down to 2.4 per cent in July. Manufacturing and industrial production majorly impacted the GDP figures as it was expected after the demonetisation drive.
The GDP was 7.90 per cent in the same quarter last year. The production of refinery products declined by 2.7 per cent, crude oil by 0.5 percent, cement by 2 per cent and fertilizer by 0.3 per cent.
In July last year, sectors such as natural gas, electricity, crude oil, coal, natural gas, cement, steel, and fertilizers, grew by 3.1 percent.
According to The Economic Times, Anis Chakravarty, Lead Economist, Deloitte said: “The latest growth number is clearly a sentiment dampener and the fall is possibly on account of the temporary shocks in combination with an overall slowing of the economy.”
Chakravarty further added: “Apart from the waning effects of demonetization, uncertainty related to the implementation of GST and related destocking seem to have a had an impact on industrial performance.”
Meanwhile, AIMIM president Asaduddin Owaisi attacked PM Modi. He said that Demonetisation has been proved as a disaster for our country. PM announced demonetisation with a promise to stop counterfeit currency and control black money. But demonetisation caused 2 percent loss to the GDP.
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