Economy Appears To Have Slowed Down, Says Finance Ministry


The GDP progress for final quarter of economic yr 2018-19 is predicted to be round 7 per cent.

India’s financial system seems to have slowed down barely in 2018-19, the division of financial affairs below the Ministry of Finance has stated in its month-to-month financial report for March 2019. The components chargeable for this slowdown embody declining progress of personal consumption, tepid improve in fastened funding, and muted exports, the report says.

On the availability aspect, the problem is to reverse the slowdown in progress of agriculture sector and maintain the expansion in trade. On the exterior entrance, present account deficit as ratio to GDP is ready to fall in This autumn of 2018-19, which is able to restrict the leakage of progress impulse from the financial system, the report stated.

The gross home product (GDP) progress for final quarter of economic yr 2018-19 is predicted to be round 6.5 per cent whereas the GDP progress for FY19 is seen at 7 per cent whereas fiscal deficit as a proportion of GDP has steadily declined and is predicted to be 3.four per cent, the report famous.

Current account deficit as per cent of GDP improved in third quarter and is ready to enhance additional in fourth quarter of 2018-19 as dip in imports has improved the merchandize commerce deficit, the Finance Ministry stated.

Monetary coverage has tried to supply a fillip to the expansion through cuts in repo charge and easing of financial institution liquidity. However, the room for this financial easing has been created by low inflation in 2018-19, though it has began to inch up in previous few months of the yr, the report stated.

The actual efficient change charge has appreciated in This autumn of 2018-19 and will pose challenges to the revival of exports within the close to future. Increase in international change reserves in final quarter of 2018-19 on account of enchancment in commerce steadiness has elevated the import cowl for the financial system, the report added.

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