An official data released by National Statistical Office (NSO) revealed that the country’s GDP growth hit an over six-year low of 4.5% in July-September 2019. The main reason for the lower performance of GDP growth is attributed to deceleration in manufacturing output and subdued farm sector activity.
The Gross Domestic Product (GDP) growth was recorded at 7% in the corresponding quarter of Fiscal Year 2018-19. In the previous quarter of the ongoing fiscal, the economic growth was 5%. 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%.
According to the data released by National Statistical Office (NSO), the gross value added (GVA) growth in the manufacturing sector contracted by 1% in the second quarter of this fiscal from 6.9% expansion a year ago.
Similarly, farm sector GVA growth remained subdued at 2.1%, down from 4.9% in the corresponding period of the previous fiscal. Construction sector GVA growth too slowed to 3.3% from 8.5% earlier. Mining sector growth was recorded at 0.1% as against 2.2% contraction a year ago.
Electricity, gas, water supply and other utility services growth also slowed to 3.6% from 8.7% a year ago. Similarly, trade, hotel, transport, communication and services related to broadcasting growth was also down to 4.8% in the second quarter from 6.9% a year ago.
On a half-yearly basis (April-September 2019), GDP growth came in at 4.8% as compared to 7.5% in the same period a year ago.
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.
The Reserve Bank had lowered the GDP growth projection for 2019-20 to 6.1% from earlier forecast of 6.9%.