The Central Statistics Office (CSO) released India’s economic growth figures for the April-June quarter of FY20 on Friday.
The growth slowed down to 5 per cent in the first quarter of the ongoing fiscal year, the slowest in seven years, dragged down by weak consumer demand and private investments.
The gross value added (GVA) growth in the manufacturing sector tumbled to 0.6 per cent in the first quarter of this fiscal from 12.1 per cent expansion a year ago.
Similarly, farm sector GVA growth remained subdued at 2 per cent as compared to 5.1 per cent in the corresponding period of the previous fiscal.
Construction sector GVA growth too slowed to 5.7 per cent from 9.6 per cent earlier.
However, mining sector growth climbed to 2.7 per cent from 0.4 per cent a year ago.
The previous low in GDP growth was recorded at 4.9 per cent in April-June 2012-13. India's economic growth stood at 8 per cent in the same quarter of 2018-19.
"GDP at Constant (2011-12) Prices in Q1 of 2019-20 is estimated at Rs 35.85 lakh crore, as against Rs 34.14 lakh crore in Q1 of 2018-19, showing a growth rate of 5 percent," the National Statistical Office (NSO) said in a statement.
Gross Fixed Capital Formation (GFCF), which is a barometer of investment, at constant (2011-12) prices was estimated at Rs 11.66 lakh crore in the first quarter as against Rs 11.21 lakh crore a year ago.
In terms of GDP, GFCF at current and constant prices during the first quarter was estimated at 29.7 per cent and 32.5 per cent respectively, as against 30 per cent and 32.8 per cent a year ago.
Earlier, the RBI had projected India’s GDP growth for FY20 at 6.9 per cent, in the range of 5.8-6.6 per cent for the first half and 7.3-7.5 per cent for the second half of FY20.
A Reuters poll also had projected the Q1FY20 GDP growth rate to be at 5.7 per cent on-year.
The economy has been witnessing a downturn as demand remains subdued. The government announced a slew of measures last week to boost demand in the economy.
