Hyderabad: India's economic growth slowed to 3.1 per cent in January-March and to an 11-year low of 4.2 per cent for the full fiscal 2019-20 amid a drop in consumption and investment.
India's Quarterly GDP Growth The Gross Domestic Product (GDP) growth stood at 5.7 per cent in the corresponding quarter of 2018-19, according to data released by National Statistical Office (NSO) on Friday.
During 2019-20, the Indian economy grew at 4.2 per cent as against 6.1 per cent in 2018-19. The economic growth was the lowest since 2008-09 when the economy had expanded at 3.1 per cent.
The government had imposed a lockdown to curb the spread of COVID-19 infections from March 25, 2020.
India's Yearly GDP Growth However, the Indian economy also got impacted during the January-March quarter due slowing down of economic activities across the world.
The Reserve Bank had earlier pegged the GDP growth for 2019-20 at 5 per cent, as projected by the NSO in its first and second advance estimates released in January and February this year.
The major economies like USA, United Kingdom, France, Germany and Japan saw a negative growth in the January-March quarter of 2020.
Major Economies GDP growth in January-March 2020 China's economy contracted 6.8 per cent in January-March 2020, showing the impact of COVID-19.
Meanwhile, the CSO revised downwards growth in the previous October-December quarter of 2019-20 to 4.1 per cent from 4.7 per cent.
Similarly, the first and second quarter growth figures were revised downwards to 5.2 per cent and 4.4 per cent from 5.6 per cent and 5.1 per cent, respectively.
According to the data, gross value added (GVA) growth in the manufacturing sector contracted by 1.4 per cent in the fourth quarter of 2019-20, from 2.1 per cent expansion a year ago.
However, farm sector GVA growth was up at 5.9 per cent, compared to 1.6 per cent in the corresponding period of 2018-19.
Construction sector GVA contracted 2.2 per cent from 6 per cent expansion earlier. Mining sector growth came in at 5.2 per cent, as against a contraction of 4.8 per cent a year ago.
Electricity, gas, water supply and other utility services segment grew by 4.5 per cent in the fourth quarter, against 5.5 per cent growth a year ago.
Similarly, trade, hotel, transport, communication and services related to broadcasting growth declined to 2.6 per cent in the fourth quarter from 6.9 per cent earlier.
Read more:Council may find it difficult to raise GST rates
Financial, real estate and professional services growth fell to 2.4 per cent in Q4 FY20 from 8.7 per cent.
Public administration, defence and other services too saw growth slip to 10.1 per cent during the quarter under review, from 11.6 per cent a year earlier.
"GDP at Constant (2011-12) Prices in Q4 of 2019-20 is estimated at Rs 38.04 lakh crore, as against Rs 36.90 lakh crore in Q4 of 2018-19, showing a growth of 3.1 per cent," the NSO said in a statement.
"Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2019-20 is now estimated to attain a level of Rs 145.66 lakh crore, as against the First Revised Estimate of GDP for the year 2018-19 of Rs 139.81 lakh crore, released on 31st January 2020.
"The growth in GDP during 2019-20 is estimated at 4.2 percent as compared to 6.1 percent in 2018-19," it said.
"The Per Capita Income at current prices during 2019-20 is estimated to be Rs 134,226, showing a rise of 6.1 percent as compared to Rs 1,26,521 during 2018-19," the statement said.
Meanwhile, data released by the commerce ministry showed that eight core industries contracted by 38.1 per cent in April 2020 due to the coronavirus-induced lockdown.
GDP growth projections for FY 2020-21
Major Rating agencies have forecast India's GDP growth for the FY 2020-21. While Moody's and Barclay's projected a 0 per cent growth, Nomura and Crisil projected a growth of -5.2 per cent to -5.0 per cent respectively.
India's GDP Growth Forecast for FY 2020-21 (With Inputs from PTI)
