New Delhi: Waving aside recent economic trends and indicators, the government on Monday said that the economy is not in recession and India recorded the highest average growth among the G-20 nations during 2014-19.
Retail inflation, growth, fiscal deficit, employment rate, consumption -- some of the most crucial factors of the Indian economy, have been looking at their worst performance in recent years. The government however, said that when one looks at the average growth rate of the past five years and projections of IMF, the economy was one of the fastest in the world.
The growth rate was at a six-and-half year low of 4.5 per cent last quarter.
In a written reply to a question in the Lok Sabha, Minister of State for Finance Anurag Thakur said that according to the IMF estimates, India continues to be among the fastest-growing economies in the world and its gross domestic product (GDP) is estimated to grow at 5.8 per cent in 2020-21 and is further projected to surpass China with a growth rate of 6.5 per cent in 2021-22.
"No...the economy is not in recession. As per the National Statistical Office (NSO), GDP growth on average was 7.5 per cent in 2014-19, which is the highest amongst G-20 countries," the minister said.
Among other queries, the ministry was asked whether the Indian economy is in a difficult phase due to recession, and most of the international agencies have also confirmed this.
Thakur further said the growth in the Index of Industrial Production (IIP) has improved as it registered a positive growth of 1.8 per cent in November 2019 as compared to a contraction of 4 per cent in October 2019 and 4.3 per cent in September 2019.
IIP contraction in September 2019 indicated the weakest performance in six years.
The government has been undertaking continuous measures to improve the overall investment climate and boost the economic growth, the minister added.
A recession is a widespread economic decline that lasts for at least six months.
(With inputs from PTI.)
