look news india
It is noteworthy that in the second quarter ending last September, GDP fell to 5.4 percent, which is the lowest level in 7 quarters, whereas in the previous (first) quarter it was 6.7 percent. This shortcoming is not fundamental.
The decline has been mainly due to lack of public expenditure, capital expenditure, but as it improves, this decline will reduce in the third quarter and there will be no significant impact on the overall economic growth, he said at an event here.
Responding to a question on the Reserve Bank’s sharp reduction in GDP growth forecast from 7.2 per cent to 6.6 per cent, he said that we will have to encourage many factors and maintain the status of a rapidly growing economy in the coming years.
While the Lok Sabha elections and decline in capital expenditure had a moderate impact on growth in the first quarter, the impact was modest in the third quarter as well. Government capital expenditure in the first quarter of 2024-25 was only 37 per cent of the budget target of Rs 11.11 lakh crore.
The purchasing power of Indians is improving, but in India you have concerns about salaries, which we can see rising, so we should focus on domestic consumption, he said as the Finance Ministry said in its forecast for fiscal year 2024. The Economic Survey has estimated 6.5 to 6.7. % GDP growth is estimated for the current financial year.
