GDP Growth: The recently released GDP figures had spread a wave of concern. In the April-June quarter, the economic growth rate was the lowest in 15 months at 6.7 percent. The Reserve Bank of India (RBI) had also estimated it to be 7.1 percent. However, Reserve Bank Governor Shaktikanta Das said on Saturday that this is not a matter of concern. This fall in the economic growth rate has happened due to the reduction in government expenditure. Due to the code of conduct imposed during the Lok Sabha elections in the country, expenditure could not be made. Its effect is visible on the GDP.
The first quarter data was lower than RBI’s estimate
Regarding the data released by the National Statistical Office (NSO), RBI Governor Shaktikanta Das said that the economic growth rate has been lower than our estimates. If we look at the data of consumption, investment, manufacturing, services and construction, all of these have achieved a growth rate of more than 7 percent. Only the figures of reduction in expenditure of the central and state governments and agriculture have been below this. In such a situation, this is not a matter of concern. Government expenditure went down due to elections and farming is almost negligible in May-June.
The situation will change with the increase in government expenditure and the agricultural sector gaining momentum
Shaktikanta Das expressed hope that this figure will improve in all the coming quarters. Due to the increase in their expenditure by the central and state governments, its effect on GDP will be clearly visible. Apart from this, activities in the agriculture sector have also increased due to good monsoon. In the first quarter of the financial year 2024-25, the agriculture sector recorded a growth rate of only 2 percent. He said that due to the spread of monsoon across the country, now the agriculture sector will also pick up pace. Shaktikanta Das said that in the coming quarters, the economic growth rate is going to be more than the RBI estimate of 7.2 percent.
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