Do Current Economic Conditions Hint At Impending Crisis?

There’s bad news on the economic front – GDP rate has slipped drastically to 5 percent and inflation rate has soared. Despite the bold steps taken by the government to revive the economy of late, the desired results haven’t been achieved owing to a rather complex situation.

A few economists discern clear signs of a slowdown while other think it’s the beginning of an economic contraction – begging the question – Is India on the brink of an economic crisis?

Let's take a look at some numbers:

The projected GDP growth rate for the second quarter is 4.25 percent to 4.74 percent.

GDP projections by experts:

SBI’s Chief Economist Soumyakanti Ghosh – 4.2 percent

Nomura's Sonal Verma - 4.2 percent

ICRA’s Aditi Nair - 4.7 percent

Kotak Securities’ Shubhdeep Rakshit - 4.7 percent

The actual numbers will be released by the end of November. However, it’s safe to assume India’s GDP growth will languish at around 5 percent. SBI’s already revised its earlier projection of 6.8 percent to 5 percent.

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