Chinmaya IAS Academy – Current Affairs Chinmaya IAS Academy – Current Affairs
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While much of the slowdown in economic growth in the second quarter can be attributed to systemic and structural issues such as a base effect and the impact of rising oil prices, the impact of election season and the corresponding uncertainty on investment sentiment cannot be ruled out, according to economists.Gross Domestic Product (GDP) growth slowed in the July-September quarter to 7.1%, the slowest it has been this financial year, from a two-year high of 8.2% in the previous quarter, according to official data released on Friday. Growth in the Gross Value Added (GVA) for the second quarter was 6.9%.The GDP growth during the corresponding quarter of the previous year was 6.3%, while GVA growth was 6.1%.“Growth actually has not slowed down in a strong way because the 8.2% in Q1 was due in large part to a base effect,” D.K. Srivastava, chief policy advisor at EY India, explained. “So, it was not as if there was a sharp fall in economic activity, and it also picked up compared to last year’s slow growth.
