RBI Governor Shaktikanta Das on Monday said that slowdown in India's growth can't be attributed entirely to global factors and claimed that the Reserve Bank acted ahead of time by reducing rates in February. India's economic growth has slowed down to 4.5 per cent in the second quarter of the current financial year, lowest in more than six years.
The RBI Governor said that they have taken actions to boost the growth without compromising on macro prudential norms. "Without compromising on macro prudential norms, we have taken actions like rate cuts, liquidity to boost growth," Das was quoted as saying by news agency PTI.
He said that governments at the Centre and states must increase spending on infrastructure for growth and the country should focus on manufacturing to become a part of global supply chain. "India should focus on manufacturing and be part of global supply chain; spending on infra by both central, state govts key for growth," he said.
Output of eight core infrastructure industries also contracted by 5.8 per cent in October, indicating the severity of economic slowdown. As many as six of eight core industries saw a contraction in output in October. Coal production fell steeply by 17.6 per cent, crude oil by 5.1 per cent, and natural gas by 5.7 per cent.
Production of cement (- 7.7 per cent), steel (- 1.6 per cent), and electricity (- 12.4 per cent) also declined during the month. The only sector that posted growth in October was fertilizers where production increased by 11.8 per cent year-on-year.
Growth in output of refinery products slowed down to 0.4 per cent in October as against 1.3 per cent in the same period last year. The eight core sectors had expanded by 4.8 per cent in October 2018.