Indian economy expected to grow at 11-year low of 5% in 2019-20
India’s GDP growth during the fiscal 2019-20 is expected at 5% as compared to 6.8% in the year-ago period, according to the first advance estimates released by Statistics Ministry on Tuesday.
India’s GDP growth during the fiscal 2019-20 is expected at 5% as compared to 6.8% in the year-ago period, according to the first advance estimates released by Statistics Ministry on Tuesday (December 7).
Estimated growth of real Gross Value Addition (GVA) in 2019-20 is 4.9% as against 6.6% in 2018-19. The manufacturing sector is expected to grow at 2% in 2019-20 as compared to 6.9% in the previous year.
The figures show a massive drop in growth rates following a deceleration in the key sectors of industry and core sectors and now presage an 11-year drop in GDP growth. In Q2, the growth had dropped to 4.5%.
“The Real GDP or GDP at Constant Prices (2011-12) in the year 2019-20 is likely to attain a level of Rs 147.79 lakh crore, as against the Provisional Estimate of GDP for the year 2018-19 of Rs 140.78 lakh crore, released on May 31, 2019. The growth in real GDP during 2019-20 is estimated at 5% as compared to the growth rate of 6.8 per cent in 2018-19,” the Statistics and Programme Implementation Ministry said.
The National Statistical Office (NSO), under the ministry, released the First Advance Estimates of National Income at both Constant (2011-12) and Current Prices, for the financial year 2019-20, along with the corresponding estimates of expenditure components of the Gross Domestic Product (GDP).
Real GVA (Gross Value Addition) at Basic Prices is estimated to increase from Rs 129.07 lakh crore in 2018-19 to Rs 135.40 lakh crore in 2019-20. Estimated growth of real GVA in 2019-20 is 4.9% as against 6.6% in 2018-19.
The sectors, which registered a growth rate of over 4.9%, are, electricity, gas, water supply and other utility services, trade, hotels, transport, communication and services related to broadcasting, financial, real estate and professional services and public administration, defence and other services at 5.4%, 5.9%, 6.4% and 9.1% respectively.
The growth in agriculture, forestry, fishing, mining, quarrying, manufacturing and construction is estimated to be 2.8%, 1.5%, 2% and 3.2%, respectively.