The slowdown in Q2 FY20 was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.
Finance Minister Nirmala Sitharaman had recently sparked controversy by saying that the mindsets of millennial adversely affected the automobile industry as they preferred to use radio taxi services instead of buying their own vehicle.
The Task Force will submit its report on the pipeline for FY 2019-20 by October 31, 2019, and on the indicative pipeline for FY 2021-25 by December 31, 2019.
Institutions are under attack and their autonomy is being eroded. The resilience of the RBI will be tested after its record transfer of Rs. 1.76 lakh crores to the government, which claims that it does not have a plan on what it will do with this windfall.
The ongoing economic slowdown has started hurting corporates as well, with companies reporting a sharp decline in both revenue and profit growth numbers in the June quarter.
Congress on Friday said that the latest GDP figures which show growth rate at 5 per cent were "dismal and disappointing" and accused the government of indulging in "headline management" instead of addressing the structural issues ailing the economy.
Referring to reforms in the financial sector and taxation procedures, he said indirect tax reform will occur through GST Council and the Task Force on Direct Taxes has already submitted its recommendations.
The steep fall in GDP was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.
Citing Kumbh Mela as an example, he said the only reason Kumbh was successfully organized with over 240 million visitors was because of the participation of investors in an Investor Summit held prior to the event which helped bring a change in the perception on the state.
Responding to another question on non-performing assets (NPAs) in percentage term and the total GDP at the end of demonetisation and till date, Thakur said: "Gross NPA of scheduled commercial banks to gross advances, as per the RBI data on global operations, was 9.20 per cent as on 31.12.2016 and 9.08 per cent as on 31.3.2019."