Why inconsistent growth rate of indian economy upsc?
Answers
Answer:
The growth of the Indian economy had been predominated by consumption inclusive of both -- Private Final Consumption Expenditure (PFCE) as well as the Government Final Consumption Expenditure (GFCE). ... In addition, another major component of India's GDP is investment, induced by both -- private and government sectors......................
Answer:
The Economic Survey in 2019 talked of a growth rate of 7% for the current year. The Reserve Bank of India (RBI), in its August policy statement, talked of a slowdown to 6.9%, from the 7% predicted in June and 7.2% predicted before that.
The Asian Development Bank cut its growth forecast from 7.2% to 7% in April 2019.
Similar is the case with the IMF which cut its forecast for the year from 7.3% to 7%. So, they all talked of a 7% rate of growth when a year earlier it had fallen below that.
In June 2019, the stock market was at a record high and yet the investment rate did not rise.
Data from the Monitoring Indian Economy Pvt. Ltd. shows that investment proposals are at a 14-year low.
In the last year, the RBI has cut interest rates four times and by a total of more than 1%; but the investment rate has not budged.