The Ruling Coalition Government led by the Corrupt Congress Party has accepted defeat that it can’t turn around the economy as it officially downgraded the GDP estimate to less than 5% and previous FY being the worst in the decade.
Growth by activity was led by agriculture up 4.6%, services up 6.9% while industry came in at 0.7%. On the
expenditure side, the 4.6% print was primarily led by net exports which contributed ~50% to the headline number. Investments (GFCF) painted a sorry picture, up 0.2% while consumption decelerated further to 4.4%.
Recent studies indicate that a sharp decline in capital productivity has resulted in India’s potential growth declining from 8% to 6.5% currently. This possibly
Read moreCongress Govt Pegs FY 2014 GDP to less than 5% – Admits Defeat