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Quarterly GDP Growth Misses Estimates, Grows Slowest In Six Years At 5 Per Cent As Manufacturing Growth Takes A Hit
Swarajya Staff
Aug 30, 2019, 06:27 PM | Updated 06:27 PM IST
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Facing global headwinds, the Indian economy has recorded its lowest quarterly growth rate in six years at 5 per cent in Q1 FY20, with the GDP recorded at an estimated Rs 35.85 lakh crore, as against Rs 34.14 lakh crore in Q1 of 2018-19.
Estimates of the growth had hovered around 5.7 per cent following a similar 5.8 per cent growth in the last quarter. The trend is in line with declining global growth rates and falling manufacturing growth across several large economies.
The worst hit has been taken by the manufacturing sector which grew by just 0.6 per cent over the year ago period. The sector had grown 12.1 per cent in FY19 over FY18 earlier.
The mining and quarrying sector however recorded a GVA addition of 2.7 per cent over the 0.4 per cent growth in FY19.
The Agriculture, Forestry and Fishing recorded the second slowest growth at 2 per cent over the 5.1 growth recorded in FY19. The chart released by the government showing the growth in various sectors is as follows
While the RBI has been cutting down lending rates, with a cumulative 110 basis points cut since the last year the results are yet to reflect in the growth rate. The government too has taken up several measures to channel liquidity into the economy including easing FIIs, the current bank reforms among others.
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