'Collapse in Private Consumption Is Seriously Bad News, Likely to Get Worse, Govt Seems Unconcerned'

In an interview that deflates some of the government’s euphoria about the recently announced Q1 economic results, the CEO and MD of the Centre for Monitoring the Indian Economy says the sizeable and worrying collapse in private consumption, which constitutes 56% of GDP and is by far the single biggest engine driving the Indian economy, is “very serious bad news”. Worse, surveys done by CMIE suggest that private consumption is not likely to pick up significantly over the next 12 months because households are “in deep despondency”. Consequently, the CMIE forecast is that this financial year the economy will grow between 7-8%. The Chief Economic Advisor’s target of 11% seems unattainable and already several independent agencies have reduced their growth target to around 9%. Join The Wire's Youtube Membership and get exclusive content, member-only emojis, live interaction with The Wire's founders, editors and reporters and much more. Memberships to The Wire Crew start at Rs 89/month.    / @thewirenews