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India is in the midst of an investment and consumption slump, says expert

There is pressure on policy makers for further fiscal and monetary support to the economy. However, focusing primarily on these would be a mistake on several counts

Consumer spending
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The survey was conducted by the NSO between July 2017 and June 2018

Ananth Narayan
The gross domestic product (GDP) data released for the second quarter of the fiscal year 2019-20 (Q2FY20) sadly reaffirms that India’s economy is in need of serious repair. 

Despite the government pushing its spending up by a strong 15.6 per cent this quarter, our economy registered a very disappointing real growth of just 4.5 per cent. Worryingly, investments recorded only 1 per cent growth, and manufacturing shrank by 1 per cent. At just 6.1 per cent, nominal growth was the lowest of this GDP series. 

India is in the midst of an investment and consumption slump. 

There is pressure on
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: Nov 30 2019 | 1:04 AM IST

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