Chief Economic Adviser (CEA) Krishnamurthy Subramanian on Friday said the government is alive to the situation and has taken several measures on the slowdown of Indian economy. The slowdown in growth is due to endogenous and exogenous factors," Subramanian said while commenting on the data. He said the government is taking all steps to revive the economy and expressed confidence that the country would be on a high-growth path "very soon".
The government remains committed to its fiscal glide path, he added.
"The government is alive to the situation and has taken several measures including mega merger of banks (announced during the day)," he emphasised.
India's economic growth dropped to a seven-year low of 5 per cent in the April-June quarter of 2019-20 due to a sharp deceleration in the manufacturing sector and sluggish agriculture output, according to official data released on Friday. The previous low was recorded at 4.9 per cent in April-June 2012-13. The economic growth was 8 per cent in the same quarter of 2018-19.
The Reserve Bank had marginally lowered the GDP growth projection for 2019-20 to 6.9 per cent from 7 per cent projected earlier in the June policy, and underlined the need for addressing growth concerns by boosting aggregate demand.
"Real GDP growth for 2019-20 is revised downwards from 7 per cent in the June policy to 6.9 per cent - in the range of 5.8-6.6 per cent for firs half of 2019-20 and 7.3-7.5 per cent for the second half - with risks somewhat tilted to the downside," RBI had said in the monetary policy statement.
China's economic growth was 6.2 per cent in April-June quarter of 2019, which was the weakest expansion in 27 years.