India’s GDP Growth Rate Down To 5% In Quarter 1, Lowest Since 2012-13.
The GDP growth was 8 per cent in the same quarter of 2018-19 while previous low was recorded at 4.9 per cent in 2012-13.
India’s economic growth dropped to a seven-year low of 5 per cent in the April-June quarter of 2019-20 due to a sharp deceleration in the manufacturing sector and inactive agriculture output, according to official data released on Friday.
The previous low was recorded at 4.9 per cent in April-June 2012-13. The economic growth was 8 per cent in the same quarter of 2018-19.
The Reserve Bank had hardly lowered the GDP growth projection for 2019-20 to 6.9 per cent from 7 per cent projected earlier in the June policy, and underlined the need for addressing growth concerns by boosting cluster demand.
“Real GDP growth for 2019-20 is revised downwards from 7 per cent in the June policy to 6.9 per cent – in the range of 5.8-6.6 per cent for first half of 2019-20 and 7.3-7.5 per cent for the second half – with risks somewhat tilted to the downside,” RBI had said in the financial policy statement.
China’s economic growth was 6.2 per cent in April-June quarter of 2019, which was the weakest expansion in 27 years
However the growth in the mining and quarrying is likely be slightly better at 0.4 per cent, compared to contraction of growth of 0.6 per cent a year ago.
Growth in construction is also likely to be 5.9 per cent in 2012-13, against 5.6 per cent last year.
According to the CSO’s advance estimates, growth in electricity, gas and water production is likely to decline to 4.9 per cent in 2012-13, from 6.5 per cent in 2011-12.
During the current fiscal, the trade, hotel, transport and communication sectors are projected to grow by 5.2 per cent, as against 7 per cent last fiscal.
Community social and personal services growth however would be slightly better at 6.8 per cent, compared to 6 per cent in previous fiscal.
Overall, the 5 per cent growth in the advanced estimates is lower than what specialist have been predicted.
Yesterday, the International Monetary Fund (IMF) had said that the Indian economy would grow by 5.4 per cent in 2012-13, but should pick up to six per cent in next tax.
The Indian economy had expanded by 8.4 per cent in both 2010-11 and 2009-10, while growth in 2008-09 was 6.7 per cent.
The advance GDP estimates are released by the CSO before the end of a financial year to enable the government to plan various estimates for incorporation in the Budget.
