India's Q2 GDP growth dips to over 6-yr low of 4.5 percent
New Delhi: India's GDP growth hit an over six-year low of 4.5 percent in July-September 2019, dragged mainly by deceleration in manufacturing output and subdued farm sector activity, according to official data released on Friday.
The Gross Domestic Product (GDP) growth was recorded at 7 percent in the corresponding quarter of FY 2018-19. In the previous quarter of the ongoing fiscal, the economic growth was 5 percent.
This GDP growth data for the September 2019 quarter is the lowest since January-March of 2012-13, when it was registered at 4.3 percent.
According to the data released by National Statistical Office (NSO), the gross value added (GVA) growth in the manufacturing sector contracted by 1 percent in the second quarter of this fiscal from 6.9 percent expansion a year ago.
Similarly, farm sector GVA growth remained subdued at 2.1 percent, down from 4.9 percent in the corresponding period of the previous fiscal.
Construction sector GVA growth too slowed to 3.3 percent from 8.5 percent earlier. Mining sector growth was recorded at 0.1 percent as against 2.2 percent contraction a year ago.
Electricity, gas, water supply and other utility services growth also slowed to 3.6 percent from 8.7 percent a year ago. Similarly, trade, hotel, transport, communication and services related to broadcasting growth was also down to 4.8 percent in the second quarter from 6.9 percent a year ago.
Financial, real estate and professional services growth slowed to 5.8 percent in the Q2 FY2019-20 from 7 percent a year ago.
On the other hand, public administration, defence and other services reported improvement with an 11.6 percent rise during the quarter under review from 8.6 percent a year earlier.
On a half-yearly basis (April-September 2019), GDP growth came in at 4.8 percent as compared to 7.5 percent in the same period a year ago.
"GDP at constant (2011-12) prices in Q2 of 2019-20 is estimated at Rs 35.99 lakh crore, as against Rs 34.43 lakh crore in Q2 of 2018-19, showing a growth rate of 4.5 percent," an NSO statement said.
Gross Fixed Capital Formation (GFCF), which is barometer of investment, at constant (2011-2012) prices, estimated at Rs 10.83 lakh crore in Q2 of 2019-20 as against Rs 11.16 lakh crore in Q2 of 2018-19.
In terms of GDP, the rates of GFCF at Current and Constant (2011-2012) prices during Q2 of 2019-20 are estimated at 27.3 percent and 30.1 percent, respectively, as against the corresponding rates of 29.2 percent and 32.4 percent, respectively in Q2 of 2018-19.
"Growth rates of GFCF at Current and Constant Prices are estimated at (-) 0.9 percent and (-) 3.0 percent during Q2 of 2019-20 as compared to 16.2 percent and 11.8 percent during Q2 of 2018-19," it added.
The Reserve Bank had lowered the GDP growth projection for 2019-20 to 6.1 percent from earlier forecast of 6.9 percent.
China's economic growth was 6 percent in July-September 2019, which was the weakest expansion in over 27 years.
Earlier in the day, the government data showed that output of eight core infrastructure industries contracted by 5.8 percent in October, indicating the severity of economic slowdown
As many as six of eight core industries saw a contraction in output in October.PTI