In a bad news for the new government on day one, CSO data showed that economic growth slowed to a 5-year low of 5.8 per cent in the fourth quarter of 2018-19, pushing India behind China, due to poor showing by agriculture and manufacturing sectors.
The growth of the eight core sector industries during Apriltoo witnessed a slowdown. The expansion was at the rate of 2.6 per cent. Theseindustries contribute about 40 per cent to the overall factory output of thecountry.
There was, however, some relief on the front of governmentfinances as the fiscal deficit for 2018-19 remained within the revised Budgettarget of 3.4 per cent of the GDP.
The CSO data on national income revealed that the annualGross Domestic Product (GDP) for fiscal 2018-19 (at 2011-12 prices) too was ata five-year low of 6.8 per cent. The GDP growth was 7.2 per cent in 2017-18.
The GDP in the fourth quarter of the fiscal ending March2019 was 5.8 per cent, lower than 6.4 per cent growth posted by China inJanuary-March 2019 quarter, thus losing the world’s fastest major economy tag.
The CSO data showed that Gross Value Addition (GVA)decelerated to 5.7 per cent in fourth quarter from 7.9 per cent inJanuary-March 2017-18.
The decline in the economic activity has been mainly onaccount of steep decline in growth in agriculture and manufacturing sectors.
The GVA in agriculture, forestry and fishing sectors contractedby 0.1 per cent as against an expansion of 6.5 per cent recorded in fourthquarter of 2017-18.
The slowdown was quite steep in the key manufacturingsegment as the GVA expansion was meagre 3.1 per cent down from 9.5 per centduring fourth quarter of 2017-18.
The ‘financial, real estate and professional services’segment, however, showed improvement with the growth rate moving up to 9.5 percent in the last quarter of 2018-19 from 5.5 per cent in the comparable periodof the preceding fiscal.
On annual estimates of expenditures of GDP, 2018-19, the CSOsaid the rates of Private Final Consumption Expenditure (PFCE) at current andconstant (2011-12) prices during 2018-19 are estimated at 59.4 per cent and56.9 per cent, respectively, as against the corresponding rates of 59 per centand 56.3 per cent, respectively in 2017-18.
In terms of GDP, the rates of Gross Fixed Capital Formation(GFCF) at current and constant (2011-12) prices during 2018-19 have beenestimated at 29.3 per cent and 32.3 per cent, respectively, as against thecorresponding rates of 28.6 per cent and 31.4 per cent, respectively, in2017-18.
As per the CSO, India’s per capita income estimated to haverisen by 10 per cent to Rs 10,534 a month during fiscal ended March 2019,government data on national income showed Friday.
In preceding fiscal 2017-18, the monthly per capita incomestood at Rs 9,580.The per capita income at current prices during2018-19 is estimated to have attained a level of Rs 1,26,406 (Rs 10,533.83monthly) as compared to the estimated for the year 2017-18 of Rs 1,14,958 (Rs9,579.83 a month).