With more information about the state of the economy coming out, it is clear that the new government will have to kickstart a weakening economy. Clearly, the NDA is leaving behind an economy with severe problems. Industrial output has declined by 0.1 percent and manufacturing growth has hit a new low in March registering a negative growth of 0.4 percent. Consumer demand is languishing in almost all sectors.
It is already worrisome that big car makers like Maruti and Hyundai have reported that their car sales have plummeted. Even motorcycle and scooter sales have fallen in the past few months. Slowdown in car sale and low volume of sales in fast moving consumer goods and tourism show that across the board, there are signs of a slowdown. The economic slowdown is now recognized even in official circles as real and GDP growth is likely to be 6. 5 per cent in the fourth quarter (Q4) of 2018-19. Non food bank credit has slowed in Q4 also. Capital goods production which registered a contraction of 8.7 per cent in March is a key source of weakness.Read More…
