If the strike rate is of any cue, the first advance estimates of GDP for the 2019-20 period slated to be released today shall nowhere be closer to actual.
In the wake economic slump which saw GDP cracking down to 6-year low of 4.5% for the quarter ended September, it is really a difficult task to come out with its estimates. No one believed the earlier estimate of 7% for FY 20 by the Economic Survey.
In its December 5, monetary policy review, RBI has already slashed GDP for the FY to be 5%. Amid fiscal deficit, there has been taken measures to cut spending across sectors and that could put further pressure on the economy that is confronting slowdown. For the first half of FY 20, economic growth measured in terms of gross domestic product or GDP stood at 4.8%.
Also, as has been the case earlier, in times of economic turmoil it has been all the more difficult to come out with GDP estimates.