Ex-CEA Kaushik Basu says slowing GDP growth cause for concern

Distress in some sectors of the economy has slowed GDP growth, the consequences of which could be “far reaching,” former chief economic adviser Kaushik Basu said on Monday. Basu, who was conferred the degree of Doctor of Literature (honoris causa) at the convocation of Jadavpur University, said GDP growth rate has “slowed down” in recent times as “distress was being witnessed” in some sectors. “This has resulted in a decrease in job creation and it is a cause for concern,” he said.

Basu, former World Bank chief economist, said distress has been “very much visible in the agriculture sector” as the “condition of farmers is bad”. The economy grew at 7.1% in July-September, the lowest in three quarters, according to the latest government data.