Economy slightly slowed down in FY19: Finance Ministry

Arun Jaitley

Arun JaitleyIndia’s economic growth appears to have slightly slowed down in the fiscal year 2018-19, the Union Ministry of Finance report for March 2019 stated.

“The Indian economy is the fastest-growing major economy and is projected to grow faster in the coming years. However, India’s economy appears to have slowed down slightly in 2018-19,” the report revealed.

The report titled ‘Monthly economy report’  has  listed out the reasons for the slowdown.

It said that the proximate factors responsible for this slowdown includes declining growth of private consumption, tepid increase in fixed investment, and muted exports. In the supply side, the challenge is to reverse the slowdown in agricultural growth and to sustain the growth in industry.

The report also stated that the current account deficit as ratio to Gross Domestic Product (GDP)  is set to fall in Q4 of 2018-19, which will limit the leakage of growth impulse from the economy.

“Monetary policy has attempted to provide a fillip to the growth impulse through cuts in repo rate and easing of bank liquidity. The room for this monetary easing has been created by low inflation in 2018-19, although it has started to inch up in last few months of the year,” the report said.

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