GDP growth in Q1 below expectations, cause of despair and concern: Subbarao
Highlights
The growth rate in the first quarter of the current financial year has been lower than expected.
In the April-June quarter, he had expected the growth rate to be more than 13.5 percent.
The economy was expected to return strongly in the first quarter of this year.
New Delhi. Former Reserve Bank of India (RBI) governor D Subbarao said on Sunday that the growth rate in the first quarter of the current financial year has been lower than expected. This is a cause for “disappointment and concern”. India’s GDP growth rate in the April-June quarter of the current financial year 2022-23 has been 13.5 percent. Due to this, the economy was badly affected due to the Kovid-19 epidemic in the same quarter of the last financial year.
Subbarao said he expected the growth rate to be over 13.5 per cent in the April-June quarter. “The economy registered a growth of 13.5 per cent in the first quarter of the current financial year, which would have been a great pleasure in any other circumstance,” he said.
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and likely to fall
Along with this, he said, “It has become a cause of despair and concern in the current situation.” He said that a big jump was expected in this quarter. Subbarao said that this growth rate of GDP in the first quarter has become a cause for concern because contrary to the leading indicators, the real growth rate has been low. This also raises the possibility of further decline in the growth rate in the coming quarters.
expected a strong return
The former RBI governor said, “This is disappointing as the economy was expected to bounce back strongly in the first quarter of this year from last year’s first quarter being badly hit by the delta wave of the pandemic.”
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global recession fears
He said that in the short term, the growth forecast in the country could be affected by higher commodity prices, fears of a global slowdown, monetary tightening by the RBI and an uneven monsoon. Uneven monsoon can affect crop production, especially rice production. The RBI had projected the GDP growth rate to be 16.2 percent in the April-June 2022 quarter. At the same time, it has projected a growth of 7.2 percent for the entire financial year.
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Tags: Former Reserve Bank of India (RBI) Governor, GDP, GDP growth, RBI
FIRST PUBLISHED : September 04, 2022, 15:53 IST
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