On November 22, 2018, I put up a post on my Facebook page that sub-five per cent growth is a new normal. On Tuesday, the National Statistical Office forecasted Indian economy growing at five per cent. This is an initial projection. Going by previous years trend, it is always revised downwards later. We need to understand this statement in a broader socio-economic and political context. The ramifications go much beyond just five per cent GDP growth rate. Looking at the number, I must conclude that for every percentage growth in GDP, India creates 7.5 lakh jobs. So, we will create only 37.5 lakh jobs in 2020, and which means that we will fall short by a huge margin on job creation. Also, the cascading effect will be felt in actual consumption and sentiment of consumer and investment outlook from the industry. We need about 1-1.2 crore new jobs for people entering the job market every year, and this is besides 30 lakh people who lost jobs as growth fell from nine per cent to five per cent (considering 1% GDP = 7.5 lakh jobs). This translates into less consumers, lesser spending. So, from a consumer spending standpoint, growth will not pick up. This will impact multiple sectors and finally lead to lower tax collections and increased fiscal deficit. Government spending will come under pressure as managing the fiscal deficit will not leave much scope for the government to spend money. In fact, spending on social sectors will be cut. We have already seen that the government has put out a circular to cut the spending from 33 to 25 percent in the January – March 2020 quarter. Signals are clear. Government spending will take a hit. Also, this is the first month of 2020, vagaries of nature are not factored in all this.