The BJP-led government’s main challenge is to create jobs by kick-starting investments as this is the only way to boost consumption durably without damaging fiscal discipline, according to Manishi Raychaudhuri, head of Asia-Pacific Equity Research at BNP Paribas.
“Private consumption (57 per cent of India’s GDP) has slowed down over the past quarter, anecdotally driven by income uncertainty. It makes sense to focus on consumption, which has been going down,” he said.
As the real GDP growth has seen a decline, private consumption in March quarter has also declined, reflecting in the drop of auto and two-wheeler sales.
The Central Statistics Office in its Q3 national account data too had revised down the growth estimate for FY19 to 7 per cent from 7.2 per cent, which is the lowest in the past five years.
Source: Business Today
