New Delhi, Sep 8: Inspite of GDP 5% and employees being laid off by many companies, Union Information and Broadcasting Minister Prakash Javadekar said it is a “cyclical process” and the fundamentals of the economy continues to remain “strong”.
India in 2018 received Foreign Direct Investment (FDI) more than China, the Minister said to prove the point.
“Let me make it very clear that sometimes slowdown is a cyclical process. But fundamentals of Indian economy are so strong and they are not been disturbed. Actually, we have received record FDI more than China last year,” Javadekar said while replying to a query during a press briefing on completion of 100 days of Modi 2.0 government.
Facts about Economy
GDP slide for 5th straight quarter; a six year low at 5% from 8% a year ago.
• Private consumption spending – slumped to an 18-quarter low, 3.1 percent, from 7.2 percent in the preceding quarter
• Gross Fixed Capital Formation (GFCF), a proxy for investment activity, grew a meagre 4 percent, less than a third of the 13.3 percent a year ago
• Construction activity for April-June 2019 quarter had eased to 5.7 percent, from 9.6 percent in the year-earlier period
Asked how the government would reach the $5 trillion economy in 2024 with the nominal increase in economic growth, the Minister said: “Our domestic economy is on strong footing and many new industries have come up because of new good governance model and rules which have been changed for foreign investments.”
The Minister said the government is expecting that there will be more and more foreign investments and more and more domestic demand.
Dubbing the current economic condition a “patch”, Javadekar said the slowdown will not hurt India’s progress rate.
The Minister asserted that India’s growth has been 7 per cent in last five years and it would continue in future. “There is no situation to be panicky about. Our economy is strong.”