GDP Growth at 5% - Lowest in Decade! India is not shining
INDIA is passing through a deep economic crisis. The Central Statistics Office (CSO) has released the Advance Estimates of GDP for 2012-13. Growth of GDP for 2012-13 is placed at 5 per cent and this is even less than RBI's projection of 5.5 per cent. And less than the 6.2 per cent growth of 2011-12.
At the sectoral level, the growth rate is 1.8 per cent for Agriculture and Allied sectors, 3.1 per cent for Industry sector and 6.6 per cent for Services sector. (This growth was 3.6 per cent, 3.5 per cent and 8.2 per cent respectively for these sectors in 2011-12).
The Finance Ministry clarifies that reduction in growth in Agriculture and Allied sectors has been on account of rainfall being lower than normal, particularly in the months of June-July. In the industry sector, growth has been lower mainly on account of a reduction in growth of manufacturing sector from 2.7 per cent in 2011-12 to 1.9 per cent in the current year.
The Ministry hoped that we would end the year on a better note.
Planning Commission Deputy Chairman Montek Singh Ahluwalia is not unduly worried. He even doubts the figures; “I am not certain they have done it in a correct way”, he said. He said that CSO does not have even full data and it is not a reliable way of looking at the situation. From his reliable ways, Ahluwalia had come to the conclusion that all you need to keep yourself above poverty was about Rs. 30 per day!
Well, this is bad news for the tax assessees. While they would be reeling under the economic strain, the tax officers will make their lives miserable in the next two months, armed with draconian circulars.