India's Q2 GDP growth dips to 6-yr low of 4.5%

30 Nov '19

2 min read

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India's Gross Domestic Product (GDP) growth touched six-year low of 4.5 per cent in July-September 2019, according to official data. This is the lowest since the country registered GDP growth of 4.3 per cent in January-March 2012-13. In the previous quarter of the current fiscal, the economic growth was 5 per cent, while it was 7 per cent in Q2 FY 2018-19.

The decrease in GDP growth is mainly due to deceleration in manufacturing output and subdued farm sector activity, the release said.

The gross value added (GVA) growth in the manufacturing sector contracted by 1 per cent in the second quarter of this fiscal from 6.9 per cent expansion a year ago, the data released by National Statistical Office (NSO) showed.

Similarly, farm sector GVA growth remained subdued at 2.1 per cent, down from 4.9 per cent in the corresponding period of the previous fiscal.

On a half-yearly basis (April-September 2019), GDP growth works out to 4.8 per cent as compared to 7.5 per cent in the same period a year ago. "GDP at constant (2011-12) prices in Q2 of 2019-20 is estimated at ₹35.99 lakh crore, as against ₹34.43 lakh crore in Q2 of 2018-19, showing a growth rate of 4.5 percent," an NSO statement said.

The Reserve Bank of India had earlier lowered the GDP growth projection for 2019-20 to 6.1 per cent from earlier forecast of 6.9 per cent.

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