India’s economy might have slowed down slightly in 2018–2019, a finance ministry report said, while noting some challenges that need to be acknowledged to get the impetus going. The monthly economic report of the Department of Economic Affairs stated a number of factors behind the slow growth.
“The proximate factors responsible for this slowdown include declining growth of private consumption, tepid increase in fixed investment, and muted exports. On the supply side, the challenge is to reverse the slowdown in growth of agriculture sector and sustain the growth in industry.”, the report said.
The report in a way complements the data showing the slowdown in some sectors, such as manufacturing and automobile. The growth in GDP in the period of October-December of 2018–2019 slowed to 6.6%, while the Central Statistics Office has calculated growth for Fiscal Year 2018–2019 as 7%, slightly down from the previous approximate of 7.2%.
However, India remains the fastest growing economy across the globe and many multilateral bodies believe that the growth rate will increase in the coming months owing to the reforms undertaken by the government. The new government which assumes the office later this month is also believed to disclose steps to accelerate the growth.