The country’s macroeconomic situation is “very uncertain” and gross domestic product (GDP) may fall by about 10 percent in the current financial year. Former chief statistician Pranav Sen expressed this view.
The sluggish economy is not under the control of governments
Sen said in an interview with PTI that the Narendra Modi government’s overall outlook for the economy is not good, but that this slowdown in the economy is beyond its control. “The current macroeconomic situation in India is very uncertain at this time,” Sen said. I say we have to be very careful. I think there is still some ‘optimism’.
“The real growth rate of India’s economy is likely to be 10 per cent negative in the current financial year, 2020-21,” he said. Senate said quarterly GDP figures are still based on some corporate accounts. Corporate sector performance is not worse than non-corporate sector.
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Micro, Small and Medium Enterprises (MSMEs) sectors have been most affected
Renowned economists say, “We know that the micro, small and medium enterprises (MSMEs) sector is more affected than companies. In such a situation, the figures from the national accounts show a more optimistic picture of the economy.
Sen emphasized on growing investor confidence. Investors are the new people who are putting their money into new productivity, he said. It is completely absent. He said the economy cannot grow until investment returns. “As of now, our production capacity will not be higher than 2019-20,” Sen said. In fact it is less than this, as some capacity is now closed.
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Pranab Sen heads the Statistical Standing Committee (SCES)
He is also the head of the Senate Statistics Standing Committee (SCES). He said the committee had not finalized its report yet. India’s economy showed better growth than expected in the September quarter. The decline in GDP fell to 7.5 percent in the second quarter of September due to good performance in the manufacturing sector. India’s economy shrank by 23.9 per cent in the first quarter of the current financial year. According to the Reserve Bank, India’s economy is expected to fall 7.5 per cent by 2020-21.
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