India’s GDP growth slows to 11-year low of 4.2 per cent in 2019-20

Tribune News Service

New Delhi, May 29

India’s gross domestic product (GDP) growth in the fourth quarter of 2019-20 has been provisionally estimated at 3.1 per cent as against a rise of 5.7 per cent in the same period last year.

In another set of data, output in eight core sectors was estimated to have contracted 38.1 per cent in April which suggests economically much bleaker days ahead.

Economic growth during the full financial year of 2019-20 was also slow. GDP grew by 4.2 per cent as compared to 6.1 per cent expansion in 2018-19, the slowest growth in GDP in 11 years. The earlier estimate by various arms of the government was 5 per cent growth in ‘19-20.

The slide in GDP growth during the January to March quarter, a partially Covid-impacted month, was due to a crash in most core sector indicators except coal, according to the National Statistical Office.

The drop was especially precipitated by fall in production of cement (-4.9 per cent), steel (-3.9 per cent) and crude oil (-5.7 per cent). Sales of commercial vehicles crashed to minus 42 per cent as against an increase by 3.8 per cent during the same period last year.

The decline had an impact on the well-being of the people who withdrew their savings, leading to bank deposits falling by minus 53 per cent 

Due to the slow growth rate, per capita income in real terms was unable to cross the Rs 1 lakh mark. NSO said India will attain per capital income of Rs. 94,954 during ‘19-20 as against Rs. 92,085 in ‘18-19, a growth of 3.1 percent as against 4.8 per cent in the previous year.