04 July 2020

Editor's Space

Slowdown Blues


The Indian economy is facing a six-year low GDP growth rate of 5 per cent. Economists at State Bank of India, Nomura Holdings and Capital Economics have pegged India's GDP growth for the quarter ended September to be between 4.2 per cent and 4.7 per cent.  


A 4.2 per cent growth rate would be the lowest since the Centre adopted a new base year for GDP data in 2012. The figure is a sharp deceleration from the 5 per cent reported in the first quarter of the current financial year. "High-frequency indicators have plunged and domestic credit conditions remain tight amid weak global demand," says Bloomberg.


In this context, spending on infrastructure projects has been among thrust areas of government to arrest a declining GDP. “The government will frontload infrastructure spending in a bid to give the economy a boost and announce one or two more sets of stimulus measures aimed at reviving growth in the coming quarters,” announced  Finance Minister Nirmala Sitharaman recently.


“Today the economy needs money... There should be consumption increase because of government spending money and that can be best spent through spending on infrastructure. I have appointed a task force which shall very speedily identify projects through which this money can be frontloaded and not wait for some other time,” she said. “We are in the process of identifying projects with which we can speedily get this money pushed down,” she added.


The government has announced a plan to spend `100 lakh crore on infrastructure in the next five years, which bodes well for the construction and infrastructure sectors.


Traditionally, construction and infrastructure sectors have been a growth engine for the Indian economy. And it’s now more important that these sectors remain so to revive the Indian economy.


EXCON 2019 is the right place to start for both these sectors. This is an important trade fair where fraternity of both sectors can spearhead the economic revival process.


So I wish Godspeed to all of you in chasing away Slowdown Blues!!!!

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