India's GDP growth further dips to 4.5%, lowest in six years

Updated: Nov 30, 2019, 08:15 IST | Agencies | New Delhi

The growth was registered at 7 per cent in the corresponding quarter of 2018-19.

Construction sector GVA growth too slowed to 3.3 per cent from 8.5 per cent. File pic
Construction sector GVA growth too slowed to 3.3 per cent from 8.5 per cent. File pic

New Delhi: India's GDP growth hit an over six-year low of 4.5 per cent in July-September 2019, dragged mainly by deceleration in manufacturing output and subdued farm sector activity, according to official data released on Friday.

The previous low was recorded at 4.3 per cent in the January-March period of 2012-13. The Gross Domestic Product (GDP) growth was registered at 7 per cent in the corresponding quarter of 2018-19.

During the six-month period (April-September, 2019), the Indian economy grew 4.8 per cent as against 7.5 per cent in the same period a year ago. The Reserve Bank had lowered the GDP growth projection for 2019-20 to 6.1 per cent from earlier forecast of 6.9 per cent. China's economic growth was 6 per cent in July-September 2019, which was the weakest expansion in over 27 years.

According to data released by National Statistical Office (NSO), the gross value added (GVA) growth in the manufacturing sector contracted by 1 per cent in the second quarter of this fiscal from 6.9 per cent expansion a year ago.

Similarly, farm sector GVA growth remained subdued at 2.1 per cent, down from 4.9 per cent in the corresponding period of the previous fiscal. Construction sector GVA growth too slowed to 3.3 per cent from 8.5 per cent earlier.

Electricity, gas, water supply and other utility services growth also slowed to 3.6 per cent from 8.7 per cent a year ago. Similarly, trade, hotel, transport, communication and services related to broadcasting growth was also down to 4.8 per cent in the second quarter from 6.9 per cent a year ago. Financial, real estate and professional services growth slowed to 5.8 per cent in the Q2 FY2019-20 from 7 per cent a year ago.

CEA speak
Chief Economic Adviser (CEA) KV Subramanian on Friday expressed hope that the country's gross domestic product (GDP) is likely to pick up in the third quarter of the current financial. "We are saying again that the fundamentals of the Indian economy continue to be strong. GDP is expected to pick in quarter three," he said.

4.3%
Previous low in Jan-Mar 2012-13

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