What has led to India's surprisingly poor 5.4% growth in Q2

GDP growth in Q2 of this financial year has come in far slower than expected by both RBI & private agencies. What has led to this slowdown and what does it mean for the economy? Deputy Editor TCA Sharad Raghavan looks into it in ThePrint #InstantAnalysis.
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[udayanbadola]

Indian state needs police, judiciary, farm, land, bureaucracy reforms ASAP. If we wanna create more jobs and push for exports and manufacturing.

[AbhishekSingh-yhce]

Alarming signs for the secondary sector. Government spending has dropped drastically in this fiscal.

[praveenkamat]

It’s election year collateral damage
Govt spending reduces on infra, more money get spent on welfare and elections campaign 👍🙏

[prashantchopde]

You did not discuss "what led to ..." Look forward to deeper analysis than what you said

[avneet]

Useless. Its not enough to tell us growth slowed in some sectors. Why did that happen?

Did some regulations change?

[zhengyunli]

I remember about a decade ago, Indian prime minister Singh said in US: Unlike China, India develops with value. So many years have passed since then, what is the value? There is no value if it is not based on material.

[sabysachikar]

Alarming decline. Inflation maybe the key as the demand worldwide is tilting southward.

[PrasannaSankar]

Hey Sharad!
thanks for all the growth figures, breaking down the growth data into 1*, 2* & 3* sectors.
What would also help is if we started with what % do 1*, 2* & 3* sectors contribute to overall Indian economy. This would make us better appreciate growth % QoQ and YoY..

Also, all your data growth can be visualized better, if complemented with simple easy-to-read charts

[WorldNewsLive]

temple gdp is gowing in india so indians are happy

[shegar]

Govt policies put all money in richs account. Middle and poor people are the people who are spending have no money to spend.

[BREAKBALLYT]

Its normal and it will be back to 7% like last months were like this

[jackbal]

The GDP is OK considering the world economy. Its still over $200B in growth for the year.

Long term issue is lack of investment in Education. India spends $12B, Chine $800B. India has a literacy rate of only 76%, how is this possible? China is 97%. These are facts. Not a political statement. India need to invest $100B a year minimum to become even a middle income country.

[koowasha]

Of course India’s GDP will go down. India depended on Hasina’s loot from Bangladesh!

[VictimHood-qvhx]

Fear of what will happen to their lives and security in general, with a politician asking TELL ME YOUR CASTE was driving down confidence and investment, however both Haryana and Maharashtra elections will bring confidence back

[niftyfuturesintradayplay]

Sir, You did not give reasons for poor GDP?

[Chronicler]

So, what did lead to India's surprisingly poor 5.4% growth in Q2? Were you just going to read the numbers for us, TCA Sharad?

[odhdhd]

Sab changa si😂. When vishwaguru is there then no worries

[jimkuan]

I am just curious. India's export to the world DID NOT CHANGE. So, exactly how those 5%, 7%, 8%, 9% GDP growth coming from? And looking at the unemployment numbers in India, it is still the same lacking jobs. So, where are all those HEATED GROWTH domestically? For over 10 years, Modi is claiming huge GDP growth, yet NOTHING much has changed. So, are you sure those GDP numbers mean much?

There is a joke goes like this, two economists had a walk in the afternoon. They saw a COW DUNG. One of them said, if I give you $1000, would you eat it? The second economist at the COW DUNG. And he got $1000. Then later, they saw another pile of COW DUNG, the second economist said to the first one, if you eat this pile of COW DUNG, I will give you $1000. So, the first economist at the COW DUNG, and he got $1000. In these two transactions, the GDP of the nation had been increased by $2000. Yet other than eating some COW DUNG, nothing had changed.

That is India's GDP number and growth. Nothing really changed.

[rajx]

To increase urban demand, the govt should give incentives for relocation to cheaper Tier-2 cities, with remote work opportunities. This will leave more money in people's hands. And also decongest the existing metros, reducing traffic jams that cause loss of productivity.

[jrkr]

When China's GDP growth slows, India's will, too.

China is India's largest trading partner, while India is China's No. 7 trade partner. That's the fact.

How can your biggest partner not affect you ?