According to theFinance Ministry’s report,the Indian economy has slowed down slightly in 2018-19.The slowdown is due to (a)declining growth of private consumption (b)tepid increase in fixed investment and (c)muted exports.
Further,the report has said that Indian economy needs to reverse the slowdown in growth of agriculture sector and sustain the growth in industry.
The report has also noted that current account deficit is set to decline as the decrease in imports has reduced the trade deficit.Current account measures the flow of goods,services and investments into and out of the country.Current account deficit takes place if the value of the goods and services we import exceeds the value of those we export.
The report said that inflation has come down which has created a room for repo rate cut.However,reduction in the key short-term lending rate or repo rate announced by the Reserve Bank of India have so far not led to a decline in commercial lending rates offered by the banks.
The report also observed that the private consumption has also declined due to drop in the growth of two-wheeler sales towards the end of the year
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