‘No one can make India a more prosperous country’: India’s GDP outlook hit new low by two thirds
India’s economy contracted by two-thirds in the three months to June as the country’s GDP shrank by more than 3.6% year-on-year.
The slowdown came after India’s government slashed the target for growth in the current fiscal from 8.6%-9.2% to 5.7%-5.9%.
The slowdown came as the government said that the economy contracted at an annual rate of 0.8% in the year to June, while growth of 7.5% was revised down from 7.9% in May.
The government also said that it was reducing the number of days of the week from 28 days to 20 days, and from 40 days to 30 days.
India’s GDP grew by 0.9%, while the unemployment rate hit a new high of 7% in June, up from 7% a year earlier.
India has suffered from a string of food riots in recent months.
Inflation rose to 4.5%, while real GDP fell by 2.1%.
India’s central bank also raised its benchmark interest rate to 7.25%.
India’s economy grew at a 6.9%-year-on, year-to-date rate in the first quarter of this year, beating its 6.8%-yearly target.
The government said it would continue with a policy of fiscal consolidation, and increase tax revenue, as well as investment, infrastructure and job creation.