New Delhi, Aug 30 (IANS) Severe slowdown in manufacturing activity in
the country pulled India's GDP growth rate in first quarter (Q1) ended
June down to 5 per cent, marking the fourth successive quarter of
decline in growth on the trot.
From 8 per cent during Q1 of 2018-19 to 5 per cent in this quarter,
the GDP has fallen by three per cent in barely a year.
On a sequential basis, the growth rate came lower than the 5.8 per
cent in Q4 of 2018-19.
The GDP growth figures came on the day when the government went on
overdrive to prop-up growth by announcing a mega merger of public
sector banks (PSBs). Finance Minister Nirmala Sitharaman has been
announcing a slew of growth-inducing measures in the recent days.
Currently, a culmination of factors such as high GST rates, natural
calamities, subdued farm produce prices, stagnant income levels and
low job generation have led to the slowdown.
Various sectors are facing a sales downturn. Industries such as
fast-moving-consumer goods (FMCG) and automobiles have been the
hardest hit.
Commenting on the GDP figures, Chief Economic Advisor Krishnamurthy
Subramanian admitted there is "some slowdown" as global headwinds and
trade wars contribute to the slackness, and expressed hope that
investment would pick up in the coming quarters.
"Investment drives our economy while consumption is a force
multiplier. We expect investment to pick up in the coming quarters",
he said.
According to National Statistical Office (NSO), the GDP at 'Constant
(2011-12) Prices' in Q1 of 2019-20 is estimated at Rs 35.85 lakh
crore, as against Rs 34.14 lakh crore in Q1 of 2018-19, showing a
growth rate of 5 per cent.
Besides the data showed that Gross Value Added (GVA) growth rate
during the first quarter of 2019-20 on a YoY basis fell to 4.9 per
cent, from 7.7 per cent during the like period of the previous fiscal.
The GVA includes taxes, but excludes subsidies.
"GVA at 'Basic Price at Constant (2011-12) Prices' for Q1 of 2019-20
is estimated at Rs 33.48 lakh crore, as against Rs 31.90 lakh crore in
Q1 of 2018-19, showing a growth rate of 4.9 per cent over the
corresponding quarter of previous year," the NSO said in a statement.
"The economic activities which registered growth of over 7 per cent in
Q1 of 2019-20 over Q1 of 2018-19 are 'electricity, gas, water supply
and other utility services', 'trade, hotels, transport, communication
and services related to broadcasting' and 'public administration,
defence and other services'."
"The growth in the 'agriculture, forestry and fishing', 'mining and
quarrying', 'manufacturing', 'construction' and 'financial, real
estate and professional services' is estimated to be 2 per cent, 2.7
per cent, 0.6 per cent, 5.7 per cent, and 5.9 per cent, respectively,
during this period."
On a year-on-year (YoY) basis, Q1 GVA for 2019-20 from the
agriculture, forestry and fishing sector showed a growth of 2 per
cent, against 5.1 per cent in the same quarter of 2018-19.
The GVA in Q1 2019-20 from the manufacturing sector grew at 0.6 per
cent, as compared to 12.1 per cent in the corresponding quarter of the
previous fiscal.
Similarly, the mining and quarrying sector grew by 2.7 per cent
against previous year's growth rate of 0.4 per cent.
GDP growth numbers:
Q1 FY20 GDP growth -- 5 per cent
Q4 FY19 - 5.8 per cent
Q3 FY19 - 6.6 per cent
Q2 FY19 - 7.0 per cent
Q1 FY19 - 8.0 per cent
FY19 GDP growth - 6.8 per cent
FY18 GDP growth - 7.2 per cent
