Severe slowdown in manufacturing activity in the country pulled India’s first quarter (Q1) 2019-20 growth rate to 5 per cent, marking the fourth successive quarter of decline in growth rate on the trot.
This is the slowest GDP growth in the last over six years. From 8 per cent during Q1 2018-19 to 5 per cent in this quarter, the GDP has fallen by three per cent in barely a year.
On a sequential basis, the growth rate came lower than the 5.8 per cent in Q4 of 2018-19.
According to the National Statistical Office (NSO), 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 per cent.
Besides, the data showed that gross value added (GVA) growth rate during the first quarter of 2019-20 on a year-on-year (YoY) basis fell to 4.9 per cent, from 7.7 per cent during the the like period of the previous fiscal.
The GVA includes taxes, but excludes subsidies.
“GVA at ‘Basic Price at Constant (2011-12) Prices’ for Q1 of 2019-20 is estimated at Rs 33.48 lakh crore, as against Rs 31.90 lakh crore in Q1 of 2018-19, showing a growth rate of 4.9 per cent over the corresponding quarter of previous year,” the NSO said in a statement.
“The economic activities which registered growth of over 7 per cent in Q1 of 2019-20 over Q1 of 2018-19 are ‘Electricity, Gas, Water Supply and Other Utility Services’, ‘Trade, Hotels, Transport, Communication and Services Related to Broadcasting’ and ‘Public Administration, Defence and Other Services’.”
“The growth in the ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Manufacturing’, ‘Construction’ and ‘Financial, Real Estate and Professional Services’ is estimated to be 2 per cent, 2.7 per cent, 0.6 per cent, 5.7per cent, and 5.9 per cent, respectively, during this period.”
On a YoY basis, Q1 GVA for 2019-20 from the ‘agriculture, forestry and fishing’ sector showed a growth of 2 per cent, from 5.1 per cent in 2018-19.
The GVA in 2019-20 from the manufacturing sector grew at 0.6 per cent, as compared to 12.1 per cent in the previous fiscal.
The mining and quarrying sector grew by 2.7 per cent, against the previous year’s growth rate of 0.4 per cent.
GDP growth numbers:
Q1 FY20 GDP growth — 5 per cent
Q4 FY19 – 5.8 per cent
Q3 FY19 – 6.6 per cent
Q2 FY19 – 7.0 per cent
Q1 FY19 – 8.0 per cent
FY19 GDP growth – 6.8 per cent
FY18 GDP growth – 7.2 per cent.