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Growth slowdown due to local, global factors; government taking steps to revive economy: CEA

The gross domestic product (GDP) data released by the National Statistical Office earlier on Friday showed that growth in the first quarter of the current fiscal slipped to an over six-year low of 5 per cent.

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Published : Aug 30, 2019, 7:31 PM IST

New Delhi: Attributing the slowdown in GDP growth to domestic and global factors, Chief Economic Adviser K V Subramanian on Friday said the government is taking various steps to boost economic expansion.

The gross domestic product (GDP) data released by the National Statistical Office earlier on Friday showed that growth in the first quarter of the current fiscal slipped to an over six-year low of 5 per cent.

"The slowdown in growth is due to endogenous and exogenous factors," Subramanian said while commenting on the data.

He said the government is taking all steps to revive the economy and expressed confidence that the country would be on a high-growth path "very soon".

The government remains committed to its fiscal glide path, he added.

"The government is alive to the situation and has taken several measures including mega merger of banks (announced during the day)," he emphasised.

Finance Minister Nirmala Sitharaman on Friday announced merger of 10 public sector banks into four, thus bringing down the number of state-run lenders to 12 from 27 in 2017.

Besides this, the minister had announced a slew of measures last week, including steps to increase liquidity in the critical NBFC sector.

Read More: IDBI Bank launches repo-linked home, auto loans at interest rates starting from 8.30% per annum

New Delhi: Attributing the slowdown in GDP growth to domestic and global factors, Chief Economic Adviser K V Subramanian on Friday said the government is taking various steps to boost economic expansion.

The gross domestic product (GDP) data released by the National Statistical Office earlier on Friday showed that growth in the first quarter of the current fiscal slipped to an over six-year low of 5 per cent.

"The slowdown in growth is due to endogenous and exogenous factors," Subramanian said while commenting on the data.

He said the government is taking all steps to revive the economy and expressed confidence that the country would be on a high-growth path "very soon".

The government remains committed to its fiscal glide path, he added.

"The government is alive to the situation and has taken several measures including mega merger of banks (announced during the day)," he emphasised.

Finance Minister Nirmala Sitharaman on Friday announced merger of 10 public sector banks into four, thus bringing down the number of state-run lenders to 12 from 27 in 2017.

Besides this, the minister had announced a slew of measures last week, including steps to increase liquidity in the critical NBFC sector.

Read More: IDBI Bank launches repo-linked home, auto loans at interest rates starting from 8.30% per annum

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Rupee gains 38 paise to close at 2-week high against dollar
          Mumbai, Aug 30 (PTI) The rupee appreciated by 38 paise to close at a two-week high of 71.42 against the US dollar on Friday led by a rally in domestic equities and renewed hopes of the US-China trade talks.
          At the interbank foreign exchange, the rupee opened up at 71.76 and gained further strength to touch a high of 71.38 against the US dollar.
          The domestic currency finally settled with a gain of 38 paise of 0.53 per cent at 71.42, a level not seen since August 16.
         The BSE Sensex ended 263.86 points, or 0.71 per cent, higher at 37,332.79. Similarly, the broader NSE Nifty rose 74.95 points, or 0.68 per cent, to close at 11,023.25.
         The rupee sentiment revived as concerns over US-China trade friction receded after China said it will not retaliate against the latest US tariffs, dealers said.
         A fall in crude oil prices also supported the rupee move. Brent crude futures, the global oil benchmark, declined 0.38 per cent to USD 60.85 per barrel.
         The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.05 per cent to 98.55.
         The 10-year government bond yield was up at 6.57 per cent. PTI BAL
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