India's economic growth slowed to 3.1% in January-March and to an 11-year low of 4.2% for the full fiscal 2019-20 amid a drop in consumption and investment. The Gross Domestic Product (GDP) growth stood at 5.7% in the corresponding quarter of 2018-19, according to data released by National Statistical Office (NSO) on Friday.
During 2019-20, the Indian economy grew at 4.2% as against 6.1% in 2018-19. The economic growth was the lowest since 2008-09 when the economy had expanded at 3.1%.
The government had imposed a lockdown to curb the spread of COVID-19 infections from March 25, 2020. However, the economy also got impacted during the January-March quarter due slowing down of economic activities across the world.
The Reserve Bank of India (RBI) had earlier pegged the GDP growth for 2019-20 at 5% as projected by the NSO in its first and second advance estimates released in January and February.
China's economy contracted 6.8% in January-March 2020, showing the impact of COVID-19.
Meanwhile, the CSO revised downwards growth in the previous October-December quarter of 2019-20 to 4.1% from 4.7%. Similarly, the first and second quarter growth figures were revised downwards to 5.2% and 4.4% from 5.6% and 5.1%, respectively.
According to the data, gross value added (GVA) growth in the manufacturing sector contracted by 1.4% in the fourth quarter of 2019-20, from 2.1 per cent expansion a year ago. However, farm sector GVA growth was up at 5.9%, compared to 1.6% in the corresponding period of 2018-19.
Construction sector GVA contracted 2.2% from 6% expansion earlier. Mining sector growth came in at 5.2%, as against a contraction of 4.8% a year ago.
Electricity, gas, water supply and other utility services segment grew by 4.5% in the fourth quarter against 5.5% a year ago. Similarly, trade, hotel, transport, communication and services related to broadcasting growth declined to 2.6% in the fourth quarter from 6.9% earlier.
Financial, real estate and professional services growth fell to 2.4% in Q4 FY20 from 8.7%. Public administration, defence and other services too saw growth slip to 10.1% during the quarter under review, from 11.6% a year earlier.
"GDP at Constant (2011-12) Prices in Q4 of 2019-20 is estimated at Rs 38.04 lakh crore, as against Rs 36.90 lakh crore in Q4 of 2018-19, showing a growth of 3.1 per cent," the NSO said in a statement. "Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2019-20 is now estimated to attain a level of Rs 145.66 lakh crore, as against the First Revised Estimate of GDP for the year 2018-19 of Rs 139.81 lakh crore, released on 31st January 2020. The growth in GDP during 2019-20 is estimated at 4.2 percent as compared to 6.1 percent in 2018-19."
"The Per Capita Income at current prices during 2019-20 is estimated to be Rs 134,226, showing a rise of 6.1 percent as compared to Rs 1,26,521 during 2018-19," it added.
Meanwhile, data released by the commerce ministry showed that eight core industries contracted by 38.1% in April 2020 due to the coronavirus-induced lockdown.
(With inputs from PTI)
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