• Thu. Mar 30th, 2023

Is Indian economy losing steam? Here’s what P Chidambaram and Neelkanth Mishra have to say


Mar 18, 2023

Veteran Congress leader and former Union Finance Minister P Chidambaram, on Saturday, mentioned that the Indian economy is losing steam taking into consideration the fall in quarterly GDP figures. His views came soon after the country’s GDP development slowed additional in the December quarter as pent-up demand eased and weakness in the manufacturing sector continued. India registered four.four per cent year-on-year development in the October-December quarter, down from six.three per cent in the July-September quarter. The figure stood at 13.five per cent in the April-June quarter final year.

Even though sharing his views at India Now Conclave, Chidambaram mentioned, “My estimate (for India’s GDP development) is among four.1 per cent and four.three per cent for the fourth quarter. So, it is a declining quarterly development price, which indicates the Indian economy is losing steam.”

Will India continue to develop more quickly than other economies in the globe? Chidambaram added that China, when it grows at three per cent or three.five per cent, will nonetheless add various occasions the annual output than India expanding at 7 per cent.

“China is 5 and a half occasions bigger than India. Consequently, the relevant quantity is the per capita earnings which shows that we are nonetheless a quite poor nation,” he mentioned.

On the other hand, Neelkanth Mishra, Equity Strategist, Credit Suisse and advisor to the Prime Minister is bullish on the GDP development and the Indian economy. “India is noticed as a steady economy amid the ongoing worldwide economic turbulence. It will continue to attract foreign investors which can bring expertise and technologies,” he mentioned adding the expectations of India’s GDP development need to be that it will contribute to 12-15 per cent of incremental development more than the subsequent 5 years.

He also added that the quarterly GDP numbers are really inaccurate. “As per NSO (National Statistical Workplace) numbers, the fourth quarter GDP development is going to be six per cent. “Everyone expects FY24 GDP to be six per cent plus. But, I assume it need to be 7 per cent. Sales of the BSE 500 corporations also show that there is completely no slowdown in output,” Mishra added.

Also Study: P Chidambaram says Modi govt did a great job in preserving fiscal deficit

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