India’s GDP growth slipped to a nearly 7-year low of 4.7 per cent in October-December 2019, weighed by a contraction in manufacturing sector output, according to official data released on Friday.
The Gross Domestic Product (GDP) growth was registered at 5.6 per cent in the corresponding quarter of 2018-19, as per the data released by the National Statistical Office (NSO).
Interestingly, the data furnished by the National Statistical Office (NSO) in the ‘Second Advance Estimates of National Income, 2019-20’ as well as ‘Quarterly Estimates of GDP for Q3, 2019-20’, showed revised growth figures for earlier periods.
As per the data, the revised second quarter GDP growth rate stood at 5.1 per cent from the earlier 4.5 per cent.
The GDP growth for the December quarter is the lowest since January-March of 2012-13 when it stood at 4.3 per cent.
According to the data released by the National Statistical Office (NSO), the gross value added (GVA) growth in the manufacturing sector contracted by 0.2 per cent in the third quarter of this fiscal from 5.2 per cent expansion a year ago.
However, the farm sector GVA growth was up at 3.5 per cent, compared to 2 per cent growth in the corresponding period of the previous fiscal.
Construction sector GVA growth too slowed to 0.3 per cent from 6.6 per cent expansion earlier. Mining sector growth came in at 3.2 per cent, as against a contraction of 4.4 per cent a year ago.
Electricity, gas, water supply and other utility services segment contracted by 0.7 per cent, from 9.5 per cent growth a year ago.
Similarly, trade, hotel, transport, communication and services related to broadcasting growth declined to 5.9 per cent in the third quarter from 7.8 per cent a year ago.
Financial, real estate and professional services growth was up at 7.3 per cent in Q3 FY2019-20 from 6.5 per cent.
Public administration, defence and other services reported improvement with a 9.7 per cent rise during the quarter under review, from 8.1 per cent a year earlier.
During April-December 2019, the GDP growth reduced to 5.1 per cent as compared to 6.3 per cent in the same period a year ago.
“GDP at Constant (2011-12) Prices in Q3 of 2019-20 is estimated at Rs 36.65 lakh crore, as against Rs 35.00 lakh crore in Q3 of 2018-19, showing a growth of 4.7 per cent,” the NSO said in a statement.
“The Per Capita Income at current prices during 2019-20 is estimated to be Rs 134,432, showing a rise of 6.3 per cent as compared to Rs 1,26,521 during 2018-19,” it added.
Meanwhile, Economic Affairs Secretary Atanu Chakraborty said the decline in economic growth has bottomed out.
Data released by the commerce ministry showed that eight core industries recorded a 2.2 per cent growth in January, helped by expansion in the production of coal, refinery products and electricity.
The Reserve bank of India (RBI) earlier this month kept the repo rate unchanged at 5.15 per cent in its last monetary policy for the current financial year.
Inflation for December had touched 7.35 per cent raising the case for a no rate-cut.
(With agency inputs)