Describing the current economic slowdown as “cyclical” and “temporary”, Union Minister Prakash Javadekar said Sunday that the country’s “fundamentals are strong”, and that the economy is on “strong footing”.
India’s GDP growth, which clocked an average of 7.7 per cent during 2014-18, contracted to 5% in the first quarter of the current fiscal year, the lowest in six years.
Last month, the Reserve Bank of India, too, had said that the economy is going through a cyclical slowdown rather than a “deep structural” one. However, it had also warned that a broad-based downturn is underway in manufacturing, trade, hotels, transport, communication and broadcasting, construction and agriculture and that issues related to land, labour and agricultural marketing should be addressed.
Javadekar said the slowdown was “temporary” and that even during the UPA government’s term GDP growth had slumped to 5% in one quarter.