India's GDP growth slips to 6.6 per cent in Q3

India’s GDP growth has slipped to 6.6 per cent in the third quarter of FY19.

The economy had grown 7.1% in the second quarter and 8.2% in the first quarter, logging 7.6% for the first half.

Weaker domestic and external demand are key factors behind the sub-7 percent growth. India would still be growing faster than China’s 6.4 percent growth in the same quarter.

Q1 has been revised to 8% from 8.2% earlier and Q2 has been revised to 7% from 7.12% earlier.

India’s GVA growth at 6.3% v/s 7.3%

The country has underperformed in the manufacturing sector – though emerging as the world’s sixth biggest auto manufacturer, and expanding production of smart phones.

Manufacturing’s share of GDP has risen just 1.5 percent in last three years to stand at nearly 18 percent, and investors complain that higher taxes, lack of efficient infrastructure and regulatory red tape make India a difficult place to work.

The GDP growth for 2018-19 in the December policy was projected at 7.4 per cent (7.2-7.3 per cent in H2) and at 7.5 per cent for H1:2019-20, with risks somewhat to the downside. The CSO has estimated GDP growth at 7.2 per cent for 2018-19.

GDP growth for 2019-20 is projected at 7.4 per cent – in the range of 7.2-7.4 per cent in H1, and 7.5 per cent in Q3 – with risks evenly balanced.


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