The Central Statistics Office recently released India’s growth statistics. Hitting a 5 year low, the country’s GDP has dropped to 5.8%. This makes India lose its seat of being the world’s fastest growing nation. With this, China has dethroned India. India has also faced the highest unemployment rate in the past 45 years.
With several challenges that the new government will have to face, this will surely be one of the deadliest. After CSO released the statistics, India realised that its GDP hit a 5 year low. It dropped to 5.8% in the fourth, and final, quarter of 2018-19. This put down India’s title of the fastest growing nation in the world.
The fourth quarter GDP was just below China’s 6.4%. CSO also revealed that India saw a 6.8% growth in 2018-19. This was below the previous year’s 7.2%.
This report was only added on with a worrying stats of unemployment. India saw its highest unemployment rate in the last 45 years. The rate skipped up to 6.1%.
Will India gain its GDP and its tag back?
The new government might have to prioritise stabilising the economic development of the country.
The low, although, came in the last fiscal quarter of Modi’s debut government. Since they were able to keep the tag of the fastest growing in the world, there is still something that Modi and his cabinet members have in them.
However, there is some relief in front of the newly appointed ones. The fiscal deficit for 2018-19 remained within the revised budget target.
Chief Statistician Pravin Srivastava, however, played down the latest survey saying it cannot be compared with previous surveys.
The fight for the highest GDP is still up. With a higher influx of companies starting to choose India as their manufacturing base, India does have an edge over China.
Read More about it, follow: India to rise higher than China in Manufacturing?