CEA Krishnamurthy Subramanian admits India is showing signs of slowdown


Commenting on the GDP growth number released today, Chief Economic Expect Krishnamurthy Subramanian today said India’s GDP, while still high, has shown signs of slowdown. Subramanian attributed ‘endogenous and exogenous’ factors like deceleration in developed economies, trade conflict as some reasons behind this slowdown. India’s GDP expanded 5 per cent in the first quarter of this fiscal, the slowest in six and half years.

He said similar phenomena was also been observed previously before during 2013-14, when growth was around 5 per cent. He however said economy is showing some greenshoots. Pointing towards GDP growth figures in Electricity & power generation sector, which is a leading indicator across the world, he said the sector grew 8.6 per cent, which is a good sign of green shoots towards higher growth.

He also pointed out that capacity utilisation has also improved 76.5 percent.

CEA said that investment will pick up in the coming quarters as government taking proactive steps to boost growth. “Government is alive to the situation and has taken several measures, including mega merger of banks,” he said.



“Government is taking all steps to boost growth. Efforts being made to speed up capital expenditure,” he added.

Last week, in a message to private sector companies, Subramanian had said the companies should not always cry for fiscal booster in the times of crisis and should learn to stand on their own feet. Subramanian said the companies needs to change their “mindset” by desisting from the tendency to grab profit and socialise losses and also seek sops in the times of stress.

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He had said the government support is needed at the time of infancy not when somebody has grown-up. Giving an illustration he said,”I would say that the private sector has been in India since 1991 and is now a 30-year-old kid. A 30-year-old kid, a man, now needs to start saying that I can stand on my own feet. I don’t need to go to papa.”

“We need to move on.. we’re a market economy, where assets do get reallocated when someone doesn’t manage it well,” he said.





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