India's gross domestic product (GDP) growth for the April-June (Q1) quarter of the current fiscal dropped to a six-year low of 5 per cent from 5.8 per cent in the previous quarter, according to the latest data released by the government. The slowdown is being mostly attributed to a sharp fall in manufacturing output and private investment and weak consumer demand.
Chief economic advisor K Subramanian attributed the slowdown in the economy in the first quarter to trade wars and global slowdown. The government remains committed to stick to its glide path of fiscal deficit, he said.India's gross domestic product growth for the April-June quarter of the current fiscal dropped to a six-year low of 5 per cent from 5.8 per cent in the previous quarter, according to the latest data released by the government. The slowdown is being mostly attributed to a sharp fall in manufacturing output and private investment and weak consumer demand.#
The previous low in GDP growth was 4.3 per cent in January-March quarter of 2012-13. India's economic growth stood at 8 per cent in the same quarter of 2018-19.
The manufacturing sector witnessed a sharp slowdown as its gross value added (GVA) fell to 0.6 per cent in 2019-20 Q1 from 12.1 per cent in the same quarter last year. The GVA growth in the construction sector slowed to 5.7 per cent from 9.6 per cent earlier.
"GDP at constant (2011-12) prices in Q1 of 2019-20 is estimated at Rs 35.85 lakh crore, as against Rs 34.14 lakh crore in Q1 of 2018-19, showing a growth rate of 5 percent," the National Statistical Office (NSO) said in a statement.
The Reserve Bank of India had marginally lowered the GDP growth projection for 2019-20 to 6.9 per cent from the 7 per cent projected in June, and underlined the need for addressing growth concerns by boosting aggregate demand.
Unemployment is at a 45-year high, car sales have slumped the most in almost two decades in July and infrastructure output grew at the slowest pace in more than four years.
China's economy reported a GDP growth of 6.2 per cent in April-June quarter. India had already lost its place as the world's fastest-growing major economy to China in the previous quarter when its GDP growth was 5.8 per cent compared to China's 6.4 per cent. (DS)
ALCHEMPro News Desk – India
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