There is bad news on the economy front. GDP growth rate has come down to 4.5 percent in the second quarter of the current financial year i.e. July-September quarter. This is the slowest growth rate of Indian economy in last 26 quarters i.e. 6 and half years . It was 7 percent a year ago as compared to 5 percent in the previous quarter. In addition, the industrial growth of 8 core sectors in the month of October has been -5.8 percent.
According to the GDP data released on Friday by the National Statistics Office (NSO), the GDP at constant price (2011-12) for the current financial year 2019-20 during July-September was Rs 35.99 lakh crore as compared to Rs 34.43 lakh crore in the same period last year. was. Similarly, the economic growth rate in the second quarter was 4.5 percent.
The agriculture, forestry and fisheries sector recorded growth of 2.1 percent and mining and quarrying by 0.1 percent in the July-September quarter. On the other hand, manufacturing sector declined by 1 percent during this period. The economic growth rate was weak due to poor performance of these three groups. Apart from this, electricity, gas, water supply and other utilities services are projected to grow by 3.6 percent in the July-September quarter and 3.3 percent in the construction sector. Gross Value Added (GVA) was 4.3 percent in the quarter under review. Whereas it was 6.9 percent in the same quarter of 2018-19 a year ago.
Government bid - nothing to worry
On the dismal figures of GDP, the Chief Economic Advisor of the government K.K. V. Subramanian has said that GDP could pick up pace in the third quarter. He said, 'We are once again saying that the foundation of the Indian economy will remain strong. GDP is expected to pick up in the third quarter.
The Finance Ministry has also said that GDP growth is expected to increase from the third quarter. The ministry said that the International Monetary Fund in its World Economic Report in October this year has estimated that India's GDP growth will be 6.1 percent for 2019-20 and 7 percent in 2020-21.
Fiscal deficit crossed target in first 7 months
There is also bad news on the fiscal deficit front. Between the first 7 months of 2018-19 ie from April to October, the fiscal deficit has exceeded the target of the current financial year. The fiscal deficit in the first 7 months was 7.2 trillion rupees ($ 100.32 billion), which is 102.4 percent of the target set for the current fiscal year in the budget.
According to the data released by the government on Friday, the government received revenue of Rs 6.83 trillion in the period from April to October, while spending stood at Rs 16.55 trillion.