India records slowest GDP growthDate: 31 August 2019 Tags: Basics of Economics
The Central Statistics Office released the Gross Domestic Product numbers for April-June quarter, which showed India’s GDP expanded 5% in the quarter through June , the slowest pace in six and half years.
As consumer demand and private investment slowed at a time when global trade frictions have dampened business sentiment, Indian econoimy grew at a pace less than 6% in the current quarter of the financial year 2018-19.
- Manufacturing’ sector grew by 0.6 percent as compared to growth of 12.1 per cent in Q1 2018-19.
- GVA for ‘Agriculture, Forestry and Fishing’ sector grew by 2 percent as compared to growth of 5.1 percent in Q1 2018-19.
- ‘Mining and Quarrying’ sector grew by 2.7 percent as compared to growth of 0.4 percent in Q1 2018-19.
- Electricity,Gas, Water Supply and Other Utility Services’ sector grew by 8.6 % as opposed to 6.7 % in Q1 2018-19.
- Trade, Hotels, Transport, Communication and Services grew by 7.1 percent as compared to growth of 7.8 percent in Q1 2018-19.
- Financial, Real Estate and Professional Services grew by 5.9 percent as compared to growth of 6.5 percent in Q1 2018-19.
- Public Administration, Defence and Other Services grew by 8.5 percent as compared to growth of 7.5 percent in Q1 2018-19.
- Construction sector grew by 5.7 % as compared to 9.7 % in Q1 of 2018-19.
Measures to boost growth
- The RBI has cut the key lending rate four times in succession by a total of 110 basis points. This move is expected to increase cash flow in the market.
- Public sector banks will get an immediate recapitalization of ?70,000 crore to ease the liquidity crisis, which is hurting big and small traders.
- Simplifying the goods and services tax (GST) further, besides providing relief to the ailing auto sector, which is grappling with the worst slump in passenger vehicle sales in nearly two decades.
- The government has allowed 100% FDI in coal and associated sectors to attract investments and boost growth.