GDP growth slides to nearly 7-year low of 4.7%

NEW DELHI: Dragged down by a contraction in manufacturing, India's GDP growth slipped to a nearly seven-year low of 4.7 per cent in the third quarter (October-December) 2019, data released by National Statistical Office (NSO) Friday showed.

The Gross Domestic Product (GDP) growth, in the corresponding quarter of 2018-19, was recorded at 5.6 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.

The economic growth was revised upwards to 5.1 per cent in the previous quarter (July-September) from 4.5 per cent estimated earlier. Similarly, the first quarter growth was revised upwards to 5.6 per cent from 5 per cent.

As per the 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 also 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 9.7 per cent rise during the quarter under review, from 8.1 per cent a year earlier.

With agency inputs

(Imge from ndtv.com)