What is the growth of GDP after 2014

The GDP growth in India after 2014 is a highly significant topic that seems to have been impacted by a number of factors. The BJP government headed by Prime Minister Narendra Modi came to power in May 2014 following a thumping victory in the Lok Sabha general elections. Four years after the government assumed the power, the Indian economy was found to have slipped back to the same state matching with what it was a year before the new government took charge.

GDP reports from 2014 onwards

During the financial year 2018, India’s GDP growth had slowed down to 6.7% when compared to what was recorded in the previous year as 7.1%. This figure was almost on par with the 6.6% GDP growth reported in the financial year 2014, just before the Lok Sabha elections were held. Hence the figures show the pace of growth of GDP under Narendra Modi government was the slowest. However, during 2015 and 2016, the GDP growth touched 7.3% and 8 % eventually slipping down in 2017 and 2018.

The reasons for the slip in GDP growth after 2014

Tracing the reasons for the slow growth of GDP, the finance experts put the blame on a few policies of the government. The demonetization implemented by the Narendra Modi government affected a large number of businesses. Especially small businesses were the ones to suffer much. The scenario following 2016 also saw a large number of job losses across multiple industry domains.

The government also introduced the GST (Goods and Service Tax) in July 2017 which was considered a massive reform by the BJP government. Though the move was heralded by many as a vital measure to regulate and systematize the taxation procedures, the implementation was not that easy. There were riddles of problems to solve and the implementation happened in a haphazard manner that also led to the slowing down of the GDP growth.

Yet another area that contributed to the slowing down of GDP growth after 2014 is the private investments segment. In fact, this had been a major challenge to the country’s economy. Over the 12 months ending with March 2018, India had scrapped a large number of projects which was said to be an all-time high in terms of number and volume. This fact has been reported in the report published by the Center For Monitoring Indian Economy. The report card for the whole year does not look encouraging enough.

Recovery and a quick surge in GDP growth

Though the ride had been bumpy over the past four years after 2014, the Indian economy managed to be labelled as the fastest growing economy of the world in 2018. The World Bank has forecasted that India’s economy is all set to grow at a rapid pace than the other major economies of the world. Now India economy is the third largest in Asia and the trends seen at present can move Indian economy to the upper slots in the years to come. A significant recovery in private instruments and a strong growth in the consumption of goods and services in the private sector is expected to fuel the growth of Indian economy over the next few years.