Is there going to be a break on India’s momentum? GDP growth may come down from 7.7% to 6%, know the reason

A big and worrying news is coming out on the global front regarding the fast pace of the Indian economy. A new estimate has been released regarding the GDP growth rate of India, which has been among the fastest growing major economies of the world for some time. According to this latest report, a big decline can be seen in the country’s economic growth rate in the coming time, due to which this pace may slip from a high level of 7.7 percent to 6 percent. This new data has raised concerns from policy makers to market experts.

What is the main reason for decreasing growth rate? Economic analysts believe that the impact of changing equations at domestic and global level is clearly visible on India’s pace. Fears of a global recession, interest rate hikes by central banks around the world and geopolitical tensions have led to a decline in international demand. Apart from this, due to high inflation rate and rising interest rates in the domestic market, the pockets of common consumers have been affected, due to which private consumption and demand are being slowed down. This is the reason why the pace of economic activities may slow down a bit in the coming quarters.

Is the country going to face any major economic crisis? Seeing this estimated decline in the growth rate, the question has started rising in the minds of common people whether the country is moving towards a difficult period or an economic crisis. According to experts, even if the growth rate comes down from 7.7 percent to 6 percent, India will still remain among the fastest growing major economies of the world. It would be wrong to call it a complete recession or crisis, rather it is a kind of economic stagnation or consolidation phase, which many other countries of the world are also going through. However, the government may have to take some tough steps on the employment front to attract new investment.

What will be the government’s strategy in the coming times? Now all eyes are on the steps taken by the government and the Reserve Bank of India (RBI) to deal with this possible slowdown. To revive the economic momentum, it will be very important to increase government expenditure on infrastructure. Along with this, a need is being felt to provide policy relief to strengthen the rural economy and increase the purchasing power of the general public. If domestic demand picks up again in the coming time, these growth rate estimates may see improvement again.