India's GDP growth slips to 4.5 per cent in July-Sept, lowest since 2013
New Delhi | Jagran Business Desk:The Gross Domestic Product (GDP) growth fell to a six year low to 4.5 per cent in the second quarter (July-September) of the year 2019-20, according to the official data. In the corresponding quarter of 2018-19, it was registered at 7 per cent. The previous low was recorded at 4.3 per cent in the January-March period of 2012-13.
Meanwhile, China's economic growth was 6 per cent in July-September 2019, which was the weakest expansion in over 27 years.
According to the official data, the Indian economy -- during the six-month period (April-September 2019) -- grew 4.8 per cent as against 7.5 per cent in the same period a year ago.
Earlier, the Reserve Bank (RBI) had lowered the GDP growth projection for 2019-20 to 6.1 per cent from earlier forecast of 6.9 per cent.
The Ministry of Statistics and Programme Implementation, in a statement, said that the slowdown in second quarter of FY20 was largely due to a sharp dip in the manufacturing sector and agriculture output.
It also said that grim industrial output data which contracted 0.4 per cent during the quarter against 3 per cent expansion in the preceding three months also caused a slip in the GDP growth rate.
The Ministry of Statistics and Programme Implementation also added that heavy rainfall in August and September along with a delayed withdrawal of the monsoon constrained activities in the mining and construction sectors.
It also contributed to a lower demand for electricity from the agricultural and household sectors. In addition, muted industrial activity reduced the demand for electricity generation, the statement further read.
Meanwhile, Finance Minister Nirmala Sitharaman, earlier this week, said that economic growth may have slowed but there is no recession. "Growth may have come down, but its not recession yet or it won't be recession ever," she had said during a debate in Lok Sabha.
She added that the government is taking every step towards the development of the economy as it has to be given a lot of support.
(With PTI inputs)
Posted By: Aalok Sensharma