As Asia’s third-largest economy, India’s growth momentum has been on a decline since the last quarter of 2018, and the trajectory is expected to continue southward in the coming months.
In the midst of a weakening global growth coupled with hikes in oil prices and the uncertainty owing to the upcoming general elections, the domestic growth has been slow. The manufacturing sector, including the textile, auto and engineering sectors are expected to feel the weight of this deceleration.
Experts opine this could extend to another quarter or two as there has been an overall decline in consumption and infrastructure spending by the government. Government spending is not likely to witness any hikes if the interim budget is any indication. The government spending in the new fiscal starting April 1, 2019, is estimated at 13 per cent as against the 15 per cent from last year.
As per reports, nearly Rs.500 billion is lined for spending during the election campaign, which economists believe will be of little help to stop the turn the slow pace around.
The projected economic growth for some of the major economies of the world, including the United States and China isn’t slated for acceleration anytime soon either. And these global cues will no doubt also hurt India’s trade growth.