As the GDP figures in the second quarter shows a slump, a BJP MP has stroke a controversy by saying that GDP is not important for the country and it should not be given importance. Speaking at the Lok Sabha, BJP leader Nishikant Dubey said that GDP will not be used in future. He claimed that GDP was started by America.
"Before 1934 there was no GDP in India. Before 1919 there was no GDP in the entire world. So why are we talking about GDP. GDP is neither Ramayana nor Mahabharata, GDP will not be useful in future", Godda MP Nishikant Dubey said.
In a massive blow to India's economy, India's second-quarter GDP (July-September) numbers stand at 4.5% - the slowest growth in almost seven years, as released by Central Statistics Office on Friday. The previous quarter (April-June) GDP numbers were at 5% and the Q2 (2018-2019) stood at 7%. This development comes inspite of the government's various conomic moves like merger of 9 PSU banks into 4, major corporate tax cuts, policy changes in the automobile sector, reduction in tax regulations to boost foreign income, attract investors and increase the consumer demand. The government currently follows the base year of 2011-12.
The official numbers released by the government showed that 8 core industries output in October declined by 5.8%. The Gross Value Added (GVA i.e GDP without taxes) grew 4.3% in July-September 2019 compared to Q1 when the growth was 4.9%. The recent slump in growth reflects the poor growth in the economy due to the slump in manufacturing, automobile industry, retail, agriculture.
Meanwhile, in September in spite of the many economic boosts, the farm sector grew 2.1 percent in the second quarter of 2019-20, due to delayed arrival of monsoon. Moreover, following a declining trend, the manufacturing sector grew by 1% indicating at the stagnant demand of goods. Apart from this, the Society of Indian Automobile Manufacturers (SIAM) data stated that sale of vehicles declined 23.7% during July-September.