The Indian economy saw a slump in its GDP growth rate in the second quarter of the current fiscal year, coming in at only 5.4% compared to the projected 6.5%. This decrease was driven by slow growth in manufacturing and mining, along with weak government expenditure and private consumption. However, the Ministry of Statistics and Programme Implementation remains hopeful, stating that the overall growth in the first half of the fiscal year was 6.2%. The Reserve Bank of India has projected a growth rate of 7.2% for the full fiscal year.
India's GDP Growth Slumps to 5.4% in Q2
India's economic growth slowed to a five-quarter low of 5.4% in the second quarter (Q2) of the current fiscal year (FY23), falling short of expectations. This marks a significant decline from the 6.5% growth recorded in the previous quarter (Q1).
Key Factors Driving the Slowdown
The slowdown in economic activity was primarily driven by weaker performance in manufacturing, mining, and quarrying sectors. Manufacturing growth decelerated to 4.3% from 14.3% in Q1, while mining and quarrying contracted by 2.4%. Additionally, government expenditure and private consumption remained subdued, further dampening growth.
Impact on the Broader Economy
The GDP slowdown raises concerns about the health of the Indian economy. Slower growth could lead to job losses, reduced consumer spending, and weaker investment activity. The government's fiscal deficit may also widen as revenue collection slows.
Government Response and Outlook
Despite the disappointing Q2 performance, the Ministry of Statistics and Programme Implementation has expressed optimism for the overall fiscal year. The first half of FY23 witnessed growth of 6.2%. The Reserve Bank of India (RBI) has projected a full-year growth rate of 7.2%.
Top 5 FAQs and Answers
1. What caused the slowdown in Q2 GDP growth?
Slow growth in manufacturing, mining, and quarrying, along with weak government expenditure and private consumption.
2. What is the impact of the GDP slowdown?
Reduced consumer spending, potential job losses, and a wider fiscal deficit.
3. What is the government's response?
The government remains optimistic and expects to achieve 6.2% growth in the first half of FY23 and 7.2% for the full year.
4. What are the prospects for future growth?
The RBI has projected a growth rate of 7.2% for FY23, but uncertainty remains due to global economic headwinds.
5. How does the current slowdown compare to past economic downturns?
The current slowdown is less severe than previous economic crises such as the 2008 global financial crisis. However, it highlights the vulnerability of the Indian economy to external shocks and the need for sustainable growth strategies.
IndiGo, one of India's leading airlines, has announced a Black Friday sale that offers discounted fares and services across its domestic and international network. The sale, available for booking from November 29 to December 2, offers one-way fares starting from INR 1,199 for domestic flights and INR 5,199 for international destinations. IndiGo is also providing flexible options for passengers to choose their seats and offering discounts on excess baggage and FastForward services. This sale showcases IndiGo's commitment to providing exceptional travel services at an unbeatable value to its customers.
In line with the rapid growth of the Indian economy, Groww Mutual Fund has launched an open-ended equity scheme called 'Groww Multicap Fund' with a minimum investment amount of Rs. 100. The fund, managed by Anupam Tiwari, will follow a disciplined multicap framework with a focus on growth, quality, and valuation discipline. With a bottom-up approach for mid and small cap stocks and a top-down approach for large cap stocks, the fund aims to capitalize on the diverse opportunities in the Indian market. According to Varun Gupta, CEO of Groww Mutual Fund, this fund offers investors a structured way to participate in India's transformative journey.
Newgen Software, a provider of a unified digital transformation platform, has received a purchase order worth Rs 32.44 crore from the Reserve Bank of India. The order is for the implementation and maintenance of the Regulatory Application Management System (RAMS) and spans a period of seven years. The company's stock has been performing well in the market, with a 69.69% surge in one year and a 532.78% gain in two years. With a one-year beta of 1.1, Newgen Software also exhibits very low volatility. The company's core products of NewgenONE platform include Contextual Content Services, Low Code Process Automation, Omnichannel Customer Engagement, and Artificial Intelligence Cloud.
The Enforcement Directorate (ED) has conducted a series of raids on businessman Raj Kundra and associates for their alleged involvement in a money laundering case connected to the distribution of pornographic material. The searches are being conducted across 15 locations in Mumbai and Uttar Pradesh. The investigation centers on the suspects' use of mobile applications and digital platforms for the dissemination of illicit content.
As Black Friday approaches, brands such as Xandres, Armedangels, Veja, Freitag, and JBC are offering alternative initiatives to counter the overconsumption and impulse buying associated with the shopping holiday. These initiatives include repair services, pausing before purchasing, swapping items, and drawing attention to water use in the fashion industry. By promoting sustainable consumption and encouraging people to cherish what they already have, these brands are taking a stand against the negative impact of Black Friday.
Get ready to save big this holiday season as Black Friday, the unofficial kickoff to the Christmas shopping season, is just around the corner. Originating in the United States during the late 1960s, this day has evolved into a global phenomenon, with retailers worldwide offering massive discounts and special deals. Despite its humble beginnings, Black Friday is now a shopping tradition celebrated by millions, with e-commerce platforms playing a crucial role in its popularity. Find out more about the history, significance, and global impact of this highly anticipated shopping extravaganza.
Indian Institute of Management, Calcutta has released the response sheet and answer keys for CAT 2024 exam. The exam was conducted on November 24 in 170 cities across India. Candidates can download their answer keys and response sheet from the official website and also submit objections against the answer key. The results are expected to be announced in January 2025 and candidates can check their scorecards on the CAT website.
China's Geological Bureau of Hunan Province has announced a groundbreaking discovery of a massive gold reserve in the Wangu gold field, with an estimated value of £66 billion. The deposit, believed to contain up to 1,100 metric tonnes of gold, has sparked a surge in gold prices and will have significant implications for both domestic and global markets. However, experts caution that the find will only partially address China's high gold consumption needs and will still require substantial imports. Stay updated on all the latest tech and gadget news on Gadgets 360, and don't forget to follow our in-house influencers, Who'sThat360, on Instagram and YouTube.
As Black Friday kicks off, retailers are scrambling to attract customers with heavily advertised discounts. However, the slow start to the sales despite ongoing promotions raises questions about the true value of these deals. In the past, the frenzy of Black Friday has led to long lines and overcrowded shopping centers, and 2023 was no different with cars stuck in hours-long queues at one New Zealand mall. With experts warning of potential pressure tactics and concerns from a major bank about overspending, it's important for young shoppers to carefully consider their purchases and not give in to the fear of missing out.