The meeting between PM Modi and finance minister Arun Jaitley to discuss economic affairs of the country has been cancelled today. Earlier, it was reported that Prime Minister Narendra Modi was scheduled to meet union finance minister Arun Jaitley and other top officials to take the stock of the economy, a senior government official said, as per The Indian Express. PM Modi was likely to be briefed about the remedial measures to bolster economic growth, the ways to create jobs and steps to spur private investments. Along with PM Modi and FM Jaitley, secretaries of the finance ministry were also about to meet to analyse the economic situation of the country the report said.
Recently, the Indian economy plunged to a three-year low of 5.7 per cent in Q1FY18. As per the data, the first quarter of the current fiscal slumped to a three-year low of 5.7 per cent, from 7.9 per cent in April-June of 2016 and 6.1 per cent of January-March. For the last six quarters, the GDP growth has declined steadily. The Economic Survey-II also predicted that the economy may not be able to achieve the targeted growth rate of 7.5 per cent owing to deflationary pressures, according to the Indian Express.
Chief Economic Adviser Arvind Subramanian had also briefed Modi on various economic issues including recent price rise of domestic fuel. The government is concerned about the teething troubles with the rollout of the Goods and Services Tax (GST), GDP numbers and the after-effects of the demonetisation that still continue to weigh on the economy. According to PTI report, exports are facing strong headwinds and the industrial growth is the lowest in five years. The current account deficit (CAD) in the April-June quarter has risen to 2.4 per cent of GDP, or USD 14.3 billion, mainly on account of the increased trade gap.