Indias GDP growth at 4.7% in Dec quarter, marginal improvement over Q2

Marco Green
February 28, 2020

India's gross domestic product (GDP) grew 4.7 per cent in October-December, in line with economists' estimates, official data showed on Friday.

The GDP growth was registered at 5.6 percent in the corresponding quarter of 2018-19, as per the data released by the National Statistical Office (NSO). The data also showed that projections for economic growth in full FY20 had been retained at 5 per cent in the second advance estimates.

However, the farm sector GVA growth was up at 3.5 per cent, compared to 2 per cent growth in the corresponding period of the previous fiscal.

The Reserve Bank had also estimated 5 percent GDP growth for 2019-20.

The electricity sector witnessed a 0.7 percent decline in the October-December quarter of FY20 as against 9.5 percent growth during the year-ago quarter.

The slump may have reached its bottom with India's growth expanding at 4.7% in the quarter ended December 31, compared to the previous quarter.

Speaking to reporters, Economic Affairs Secretary Atanu Chakraborty said that the uptick in agriculture and services along with a strong showing in core industries in December and January continued to drive growth.

In the July-September quarter of 2019-20, economic growth had dropped to a six-and-half-year (26-quarter) low at 4.5 percent due to a sharp deceleration in the manufacturing, agriculture, construction sector.

On the impact of coronavirus on the economy, she said there is no need to immediately press the "panic button", but admitted that it may get challenging if the issues prolong for another two or three weeks, citing her conversations with the industry players over the last few days.

Electricity, gas, water supply and other utility services segment contracted by 0.7 per cent, from 9.5 per cent growth a year ago.

The SBI economists revised up their FY2019-20 growth estimate to 4.7 percent from the earlier estimate of 4.6 percent because of the base effect triggered by a downward revision in the FY2018-19 growth number by the government.

The changes in the aggregate value of goods and services produced in an economy can be measured by the gross value added (GVA) which was estimated to grow at 4.5 percent in 2019-20.

"The Per Capita Income at current prices during 2019-20 is estimated to be Rs 134,432, showing a rise of 6.3 percent as compared to Rs 1,26,521 during 2018-19", it added.

Other reports by Click Lancashire

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