AMN / WEB DESK / NEW DELHI
Confirming the fears of a deepening slowdown in the economy, India’s gross domestic product (GDP) grew 4.5 per cent in July-September 2019, the lowest since the fourth quarter of 2012-13.
The data reflect that households aren’t spending enough to buy demand and companies aren’t adding capacities or hiring more.
India is now staring at the real possibility of a sub-6 per cent annual GDP growth in 2019-20, the first since 2012, amid a stuttering world economy and plunging sentiments at home.
Gross Value Added (GVA), which is GDP minus taxes and is seen as a more realistic gauge to measure economic activity, grew 4.3 per cent in July-September 2019, compared to 4.9 per cent in the previous quarter and 6.9 per cent in the second quarter of the previous year.
The slowdown comes on the back of the 5 per cent GDP growth recorded in April-June and 7.1 per cent in July-September last year.
The farm sector grew 2.1 per cent in the second quarter of 2019-20, reflecting the very late arrival of monsoon rains this year, affecting sowing in the summer kharif crop, India’s main harvest.
The manufacturing sector, which accounts for about 75 per cent of the country’s factory output, contracted 1 per cent in July-September 2019, broadly echoing that people are putting off purchases on aspirational items such as cars and televisions.
Manmohan Singh Slams Govt on Declining GDP Growth Rate
Fundamentals of Indian economy strong; Q3 GDP may pick up: Govt
The government has said, the fundamentals of Indian Economy is strong and the GDP growth rate is expected to pick up from the third quarter of Financial Year 2019-20.
While interacting with media in New Delhi on GDP numbers released today, Chief Economic Adviser K Subramanian said, IMF has projected India’s GDP growth at 6.1 per cent in 2019-20 and 7 per cent in Financial Year 2020-21 in it’s recently released report on World Economic Outlook.
Economic Affairs Secretary Atanu Chakraborty said, mega steps of reducing government stake in PSUs below 51 per cent has not happened anywhere.
He further said, Globally India is the fastest growing economy and expects an increase in investment, consumption and sentiment.
According to official data released today, India’s economic growth slipped to 4.5 per cent in the July-September period of this fiscal.
The previous low was recorded at 4.3 per cent in the January to March period of 2012-13. The Gross Domestic Product (GDP) growth was registered at 7 per cent in the second quarter of 2018-19.