GDP growth slowed to seven-year low of 4.7% in October-December, shows government data
The government retained its estimate of 5% GDP growth for 2019-’20.
India’s economic growth slipped to a nearly seven-year low of 4.7% in the October-December quarter because of continued slump in manufacturing, official data showed on Friday. This is, however, in line with what most economists had predicted.
The figures released by the government made significant revisions to the estimates for the previous two quarters. For the July-September 2019 quarter, the economic growth was revised upwards to 5.1% from 4.5% estimated earlier. Similarly, the April-June growth was revised upwards to 5.6% from 5%. This meant the growth in October-December was the lowest in 27 quarters.
The government retained its estimate of 5% GDP growth for 2019-’20. This would be the lowest growth in 11 years.
Meanwhile, the eight core industries recorded a 2.2% growth in output in January, helped by expansion in the production of coal, refinery products and electricity. Crude oil, natural gas and fertiliser sectors contracted during the month.
Earlier this month, the Reserve Bank of India had retained the estimate of growth rate at 5% for the 2019-’20 financial year ending in March, the slowest in 11 years. The central bank had lowered the prediction just two months after it had forecast a 6.1% growth rate. The central bank cited weak domestic and external demand as a reason for the downward projection.
India’s economy has been faltering over the last two years. In the current GDP series, the lowest growth rate was 4.3% recorded in the fourth quarter of the 2012-’13 financial year.