Why india's GDP rate is decreasing ?

Panama paper ka bhai aagaya hai..Ab congress aur bjp dono chup hai. Dono chhor hai samaj lo, ab kyu nh lagate ekdusre pe inzaam ab. Jab milkar chhori karte h tab ekdum chup.

nothing is down everything is up – sensex, prices, people are happy

BJP winning all elections

where is the recession as claimed by anti nationals…

paying tax is = patriotism

What happened?

As per the estimates released by the Central Statistics Office on August 31, India’s economy, as measured by the gross domestic product (GDP), grew by 5.7% in the first quarter of 2017-18, compared with 7.9% in the same quarter a year ago. This is the slowest pace of GDP growth recorded since the NDA came to power in May 2014. India grew by a strong 9.1% in the quarter from January 2016 to March 2016. The growth recorded in the subsequent quarters was 7.9%, 7.5%, 7% and 6.1%. So this is the fifth quarter in a row that the growth has slipped, with the pace of decline picking up momentum in the last two quarters. The gross value-added (GVA) in the economy grew at 5.6% between April and June, the same pace as the previous quarter, but sharply lower than the 7.6% growth in the first quarter of the last year.

Is this surprising?

Most economists didn’t expect a sharp uptick from the tepid 6.1% mark recorded in the January-March quarter this year, yet few anticipated a decline to 5.7%. The government has sought to divorce the growth trend from the impact of its decision to demonetise ₹500 and ₹1,000 currency notes last November, but economists believe the lingering effects continue to jolt sentiment. Growth, the government has argued, had begun to slow even before the move to suck out 86% of the currency notes in circulation. With the currency levels reverting close to the pre-demonetisation ‘normal,’ the bigger disruptive force affecting the latest GDP growth numbers was the introduction of the Goods and Service Tax (GST) from July 1. Businesses nationwide whittled down production in the April-June quarter and focussed on off-loading the existing stock, thanks to the uncertainty about how the new indirect tax regime will treat earlier tax credits on inputs.

This also impacted GVA numbers, as a lot of the inventory that was off-loaded had already been accounted for in the value of production in the earlier periods. Moreover, while firms saw a healthy growth in sales, their margins were dented by a spurt in commodity prices spiking input costs. Lastly, wholesale price inflation turned negative at this time last year, so growth numbers appeared higher as a result of their statistical impact, which is no longer the case, the government has argued.

Which sectors are hit?

The manufacturing sector, as a sub-set of industry, led the growth tumble, expanding by just 1.2% in the quarter, compared with 5.3% in the previous quarter and 10.7% a year ago. This was the worst quarter for Indian manufacturing in five years. Overall industrial output also collapsed to 1.6% growth from 7.4% a year ago and 3.1% in the previous quarter.

The construction sector that has been the bulwark of job creation grew by just 2% (in GVA terms) as it grapples with the headwinds of a new regulatory regime (RERA), the GST and leveraged balance sheets of developers. Mining GVA shrank by 0.7%, compared with a 0.9% dip last year.

The services sector offered some semblance of stability, growing at 8.7% compared with 9% in the same quarter last year, but a deeper look suggests this was driven by a rise in trade-related GVA to 11.1% (from 8.9%). This is proof of sorts that the destocking in manufacturing was reflected in higher volumes (often discount-driven) in the trade segment. Agriculture GVA dipped from 2.5% in the first quarter of last year to 2.3%, though crop output increased healthily. Low prices for crops apart, it appears that other agriculture-related activities, such as animal husbandry, have dragged down the sector’s overall growth.

What lies in store?

The Statistics Office hopes that growth will rebound in the current quarter, “subject to how efficiently companies adapt themselves to the GST.” The new NITI Aayog Vice-Chairman Rajiv Kumar said growth would return to 7%-7.5% between July and September. Analysts are reworking their growth hopes for the full year — rating agency Crisil has curbed it from 7.4% to 7%. Finance Minister Arun Jaitley has admitted that the latest growth print poses a challenge for the economy and the government needs to work harder in the coming quarters to spruce up growth. Watch out for policy actions to spur investment and job creation.

http://www.thehindu.com/business/Economy/why-is...

All India needs is a religious ZOMBIES outbreak. Chaos will precipitate Order.

Happy with where I am. I don’t really need these goons people around me! Believe me I don’t want to believe there side of story which is so orthodox. That is the problem with RSS they are not ready to accept the chance, they still leaving in some 50s. Don’t except the change, and sooner or later you will be washed.

@admin @nofpd move this thread to politics section .

Internet is a ocean of wrong information
Just remember that,this will help you sometime

Many industries buy and sell product is less compare to last year everybody know why for example crackers this Diwali business is dull.. Factory Outlet product stay in warehouse means how they sell ????

People dreaming here we would be 6trillion economy. Us is 27trillion, and we 2trillion, so stop dreaming. Gareebe desh ka mita nh skte. Badi badi baate logo ki. I must say, don’t support anybody, they are just playing their innings before they get out. Who are we? Yes we r on the other side of the fench, feeling entertained.

Do check DHRUV RATHI videos on YouTube. He is young like us. And he don’t talks like shit bjp. Do check before commenting.

As far as I know, if you need growth taxes should be as lower as possible. But it’s the reverse here. Full loot mode on and dumb people are still happy.

Because the govt is legally looting the people whereas congress illegally looted. Think about it.

Government should boost investment in manufacturing ,research department industries ,this will surely boost manufacturing quality and quantity in Indian industry ..
Better transportation system and new highways will also add benefits to doing buisness..
Overall I can say in upcoming 10 years our country will be a economical beast and

I See too many anti government ,economy propaganda in social media ,

But my Dear friends All We Need is just self believe and trust on our country

Learn from chinease and Japanese people

Bcuz
@rajrocks Didnt shopping on This Diwali

Due to GST & DEMONITISATION

More and more people on DD…. Jobless fellas…

Because you din’t shop enough on big Billion Day !

Dubb jaye India…..better rhega #Reservation #Corruption

Ache din ,________________

Ask the economist who sucked out all the money from the system.