The economy of India expanded at a 4.5 percent rate in the July- September quarter of 2019-20, over the respective quarter last year, the slowest in 26 quarters. It was 5 percent in the previous quarter and 7.1 percent in the corresponding quarter in 2018-19. Since the Q4 of 2017-18, the Indian economy registered 6 straight falls indicating its deteriorating health.
As per official data, released on Friday, the Gross Domestic Product (GDP) in the Q2 of 2019-20 is Rs 35.99 lakh crore at constant (2011-12) price, 4.5 percent more than the Rs 34.43 lakh crore GDP in the Q2 of 2018-19.
There are multiple factors responsible for the economic deceleration in India. Shrinking Industrial output and weak private investment are the contributors to this state of the economy. The economy has suffered more because of the reduction in consumer demand and credit inflow.
The NSO report card has presented the GVA figures for the second quarter of 2019-20. GVA growth rate year-on-year this July- September quarter came down to 4.3 percent at constant (2011-12) prices, as per the report.
The agriculture sector came down to a 2.1 percent growth rate in the 2019-20 second quarter from 4.9 percent in the second quarter of 2018-19. The Mining sector recovered marginally into a positive growth rate of 0.1 percent, which was -2.2 percent a year back. In the previous quarter growth rate in the Mining sector was 2.7 percent.
Manufacturing shrank to negative (-0.1 percent) growth in the July- September quarter of the current fiscal. In the second quarter of 2018-19, the manufacturing growth rate was 6.9 percent.
The construction sector saw a massive fall in growth rate to 3.3percent in the second quarter of 2019-20, which was 8.5 percent in the corresponding quarter of 2018-19. In the previous quarter growth rate in the construction sector was 5.7 percent.
The sector comprising of Electricity, gas, water supply, and other utility services had a GVA growth rate of 3.6 percent in the July-September quarter coming down from 8.7 percent in the July- September quarter of 208-19.
. Quarterly GVA at Basic Prices for the second quarter of 2019-20 from this sector grew by 4.8 percent as compared to growth of 6.9 percent in the same quarter of 2018-19.
With this poor economic performance, India once topped the list of first growing economies in the world, dropped to the fifth spot. And, the five trillion USD target has distanced by a few more years.