Saturday, October 1, 2022

Official and massive: Slowdown pushes India’s GDP to 5% in Q1

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New Delhi: It’s official. India Inc is facing its worst slowdown in seven years. The Gross Domestic Product (GDP) growth for the Q1 of financial year 2019-20 slumped to 5 percent. The GDP growth traced a sharp 0.8 percent point decline in comparison to the last quarter of the previous financial year that ended in March. The current GDP numbers are the worst recorded since the first quarter of 2013.

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 percent.

How have individual sectors fared?

The manufacturing sector grew by 0.6 percent as compared to a growth of 12.1 percent in Q1 of 2018-19. Gross Value Added (GVA) for ‘Agriculture, Forestry and Fishing’ sector grew by 2 percent as compared to a growth of 5.1 percent in Q1 2018-19.

Mining and Quarrying sector grew by 2.7 percent as opposed to a growth of 0.4 percent in Q1 2018-19. Electricity, gas, water supply and other utility services’ sector grew by 8.6 percent as compared to a growth of 6.7 percent in Q1 2018-19. The construction sector grew by 5.7 percent as compared to a growth of 9.6 percent in Q1 2018-19.

Trade, Hotels, Transport, Communication and Services grew by 7.1 percent as compared to growth of 7.8 percent in Q1 2018-19. Financial, Real Estate and Professional Services grew by 5.9 percent as compared to growth of 6.5 percent in Q1 2018-19. Public Administration, Defence and Other Services grew by 8.5 percent as compared to growth of 7.5 percent in Q1 2018-19.

The backdrop

The new GDP growth figures come at a time when the Indian economy is going through a slowdown. The sectors that have been particularly hit by it are auto, manufacturing and real estate sectors.

The financial year 2018-19 had ended with an overall GDP of 6.8 percent, which was marginally lower than the year before.
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The figure for the fourth quarter of FY2018-19 stood at 5.8 percent.

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