Ahead of 2019 polls, GDP pitches lowest growth rate in three years; drops to 7.1 percent in Q2
The country's GDP (Gross Domestic Product) has seen a backward shift by dropping to 7.1 percent in the July-September quarter from 8.2 percent in the previous quarter. According to government's data released on Friday, a sharp decline in manufacturing, agriculture, and mining activities catapulted a setback in the current GDP growth.
Even though the GDP has shown a lowest growth rate in three years, India is still remains the fastest growing economy in the world. China is growing at a speed of 6.5 percent.
"This quarter also faced the challenge of higher oil prices resulting in much higher import bill and the weakening of the rupee. The economy is on track to maintain a high growth rate in the current global environment," the finance ministry said in a statement. Growth has shown a rise over the past year; the economy had grown 6.3 per cent in the corresponding quarter last year.
"GDP growth for second quarter 2018-19 at 7.1 per cent seems disappointing. Manufacturing growth at 7.4 per cent and agriculture growth at 3.8% is steady. Construction at 6.8 per cent and mining at -2.4 per cent reflect monsoon months deceleration," Garg tweeted.
GDP growth for second quarter 2018-19 at 7.1% seems disappointing. Manufacturing growth at 7.4% and agriculture growth at 3.8% is steady. Construction at 6.8% and mining at -2.4% reflect monsoon months deceleration. Half year growth at 7.4% is still quite robust and healthy.— Subhash Chandra Garg (@SecretaryDEA) November 30, 2018
The first quarter growth rate was 8.2 percent which is accounted to be the best in nine quarters. Commenting on the slowing economic growth, Economic Affairs Secretary Subhash Chandra Garg said that the GDP growth "seems disappointing", but growth rate for the first six months of the fiscal was robust and healthy.
According to Reserve Bank of India's forecast, India will see an economic growth of 7.4 percent for the financial year ending in March which is a recovery from 6.7 per cent in the previous year, which was the slowest in four years.