BackGrowth slows to 6.3% amid manufacturing contraction
Data from the ministry of statistics and programme implementation showed that government spending in the September quarter declined by 4.2% from the year ago period to ₹3.36 trillion
PremiumNEW DELHI : India’s gross domestic product (GDP) expanded at 6.3% in the September quarter, slower than the 8.4% growth seen in the same time a year ago, as manufacturing output contracted and the base effect waned, official data showed.
India’s economy had grown at 13.5% in the first quarter and the second quarter growth reported on Wednesday is in line with the RBI’s forecast. The Central bank has forecast a 7% growth in the current financial year.
Data from the ministry of statistics and programme implementation showed that government spending in the September quarter declined by 4.2% from the year ago period to ₹3.36 trillion. But data also showed some silver lines. Fixed investments or gross fixed capital formation (GFCF) has seen a 10.4% growth in the September quarter to ₹13.2 trillion, giving hopes to policy makers that investments are picking up in the economy.
Private consumption too showed a 9.7% year-on-year growth to ₹22.3 trillion in the September quarter, suggesting that this could further help in driving investments.
Farm sector too showed robust growth in spite of a contraction in rice production. Agriculture, forestry and fishing output showed 4.6% growth in the September quarter compared to 3.2% growth in the same time a year ago.
Manufacturing sector output contracted 4.3% in the September quarter while mining and quarrying output witnessed a 2.8% contraction, data showed.
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