India's GDP for the fourth quarter of 2019 has slipped to settle at 5.8 per cent. With this India has lost its spot as the fastest growing nation to its neighbour China.
Accordingly, India's economy has grown at 6.6% during the third quarter of 2019, 7.1 % in the second quarter and 8.2% during the first quarter respectively.
The Q4 2019 growth is the slowest one in the last five years.
The GVA for Q4 stood at 5.7 per cent.
The weak domestic consumption added with the escalating trade war between the U.S. and China and slow down of global economic growth are the key reasons behind the sub-7-per cent growth of GDP for the fourth quarter. The growth has fallen below China for the first time.
India has underperformed in the manufacturing sector despite emerging as the world's sixth-biggest automaker and expanding itself in production of smartphones across various plants which are located in various parts of India.
A survey by the FICCI has put forth that the Annual median GDP growth forecast for fiscal 2019-20 to be 7.1% and further projected 7.2% growth for fiscal 2020-21.
Sector Wise Growth
- Manufacturing Sector grew at 3.1% in Q4 as against 6.7% in Q3.
- Agriculture Sector grew at (0.1%) in Q4 as against 2.7% in Q3.
- Mining Sector rose up to touch 4.2% in Q4 as compared to 1.8% in Q3.
- Construction Sector grew at 7.1 % in Q4 as against its previous record of 9.6%.
- Electricity and other public utilities rose up by 4.3% in Q4 as against 8.2% in Q3.
- Financial Services Sector was up at 9.5% as against its previous record of 7.3% in Q3.
- Trade, Hotel, Transport, Communication Sector stood at 6% in Q4 as against 6.9% in Q3.