GDP Rate Lowest In 3 Quarters, India Still Fastest-Growing Major Economy

Source- ndtv.com

India’s economy slowed to 7.1 per cent in the July-September quarter of the year from 8.2 per cent in the previous quarter on the back of a sharp drop in manufacturing, agriculture and mining activities, government data showed on Friday. GDP or gross domestic product has shown the lowest growth in three years but India still remains the world’s fastest-growing major economy.

“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.

The GDP numbers were below a median estimate in a poll by news agency Reuters which had pegged the annual growth of Asia’s third-largest economy at 7.4 per cent in the second quarter.
“The growth in this quarter seems disappointing,” Economic Affairs Secretary Subhash Chandra Garg tweeted.

GDP at constant (2011-12) prices in the second quarter of 2018-19 is estimated at Rs. 33.98 lakh crore, against Rs. 31.72 lakh crore in the corresponding quarter last year, according to the official statement.

Mining and quarrying output has declined by 2.4 per cent in the quarter from 6.9 per cent a year ago.
The Reserve Bank of India (RBI) has forecast an economic growth of 7.4 per cent for the financial year ending in March, a recovery from 6.7 per cent in the previous year, which was the slowest in four years.