Massive slowdown in Indian economy

New Delhi: With a drop of 1.1 percent, India’s gross domestic product (GDP) grew 7.1 percent in July-September. It was 8.2 percent in the previous quarter. High fuel prices, a sliding rupee and relatively weaker rural demand are believed to be the cause behind the slowdown in the economy.

According to the latest national income data released by the Central Statistics Office (CSO) on November 30, gross value added (GVA) at 2011-12 prices, which is GDP minus taxes, grew 6.9 percent in July-September, slower than the previous quarter’s 8 percent, but faster than the previous year’s 6.1 percent growth in same quarter.

While the manufacturing sector grew 7.4 percent in July-September, slowing down considerably from 13.5 percent expansion in the previous quarter and 7.1 percent a year ago, the agriculture sector fell to 3.8 percent during July-September from 5.3 percent in the previous quarter and 2.6 percent a year ago.

The deceleration in the farm sector has been attributed to a patchy distribution of the monsoon rains, flooding in some areas as well as late withdrawal of rains from some regions, damaging crops.

economic affairs secretary Subhash Chandra Garg has tweeted “GDP growth for second quarter 2018-19 at 7.1 percent seems disappointing. Manufacturing growth at 7.4 percent and agriculture growth at 3.8 percent is steady. Construction at 6.8% and mining at -2.4% reflect monsoon months’ deceleration. Half year growth at 7.4 percent is still quite robust and healthy.”