Growth Down, But There Won't Be Any Recession, Says Finance Minister Nirmala Sitharaman (Photo Credit: ANI)
Union Finance Minister Nirmala Sitharaman on Wednesday admitted that the economic growth of the country has decreased during their tenure but assured there won’t be any recession "If you are looking at the economy with a discerning view, you see that growth may have come down but it is not a recession yet, it will not be a recession ever," Sitharaman told the Rajya Sabha.
According to Fitch group firm India Ratings and Research, Indian economy may have slowed for the sixth consecutive quarter in July-September to 4.7 per cent. The Indian economy expanded 5 per cent in April-June, its slowest annual pace since 2013. Second-quarter GDP numbers are likely to be announced on Friday.
The 4.7 per cent projection for the second quarter of the current fiscal would mark six consecutive quarters of slowing growth, a first since 2012. This comes despite a recent series of fiscal stimulus, including reduction in corporate tax rates.
"India Ratings and Research has revised its GDP growth forecast for FY20 to 5.6 per cent. This is the fourth revision and has come in after the agency had revised its FY20 GDP growth forecast only a month ago to 6.1 per cent," the rating agency said in a statement.
The revision, it said, became "inevitable as the high-frequency data now suggests that the agency’s estimate of 2QFY20 GDP growth coming in a little higher than 5 per cent is unlikely to hold".
"The new projection suggests that 2QFY20 GDP growth is likely to be 4.7 per cent," it said.
(With PTI Inputs)