Union Minister Dharmendra Pradhan on Sunday said the current economic slowdown is “temporary” and a result of the ongoing global trade war between the US and China. The fall in the GDP growth during the second quarter of the current fiscal is “cyclical in nature” and the economy has started moving in the right direction, he said.
“The slowdown in the economy is not because of domestic reasons but the ongoing trade war between the US and China,” Pradhan told reporters here.
Petroleum Minister said the trade-tension between the two large economies has adversely impacted seveal countries.
Asked about the dip in GDP growth to 4.5 per cent in the July-September period, 2019, Pradhan said it was also the impact of the trade war and the issues relating to oil and other commodities in the world market.
“It is natural and cyclical in nature”, he said. India’s economic growth slipped further to hit an over six-year low of 4.5 per cent in July-September, according to official data released on Friday.
The previous low was recorded at 4.3 per cent in the January-March period of 2012-13. The Gross Domestic Product (GDP) growth was registered at 7 per cent in the corresponding quarter of 2018-19.
Pradhan, who is also the steel minister, was here to campaign for BJP candidates for Jamshedpur East and West constituencies, Seraikela and Kharswan assembly seats.
He said the fundamentals of the country’s economy are strong and it has “started moving in the right direction”.
Pradhan said steel and passenger vehicles sectors in the country have started showing improvement.
“The sale of two-wheelers is also recorded an upward trend,” the BJP leader said. He said the Jharkhand “is heading towards retaining a stable government”.
“The people of the state have made up their minds to repose faith in the BJP-led government,” Pradhan claimed.