The Q2 GDP numbers, which came in at a six year low of 4.5 per cent, had largely to do with poor growth contribution from electricity, mining and manufacturing.
Quarterly GVA at Basic Prices for Q2 2019-20 from 'Mining and Quarrying' showed a growth of just 0.1 percent. The key indicators of Mining sector, namely, production of Coal, Crude Oil and Natural Gas and IIP Mining registered growth rates of (-) 10.3 percent, (-) 5.1 percent, (-) 2.6 percent and (-) 1.2 percent, during Q2 of 2019-20 as compared to 6.2 percent, (-) 4.4 percent, (-) 2.0 percent and 0.9 percent respectively, during Q2 of 2018-19.
Poor contribution from manufacturing
Manufacturing activity during the period ending Sept 30, 2019 also saw a sharp contraction.
The Quarterly GVA at Basic Prices for Q2 2019-20 from 'Manufacturing' sector grew by (-)1.0 percent as compared to growth of 6.9 percent in Q2 2018-19.
The growth of organised sector (which has a share of more than 75 percent in the Manufacturing sector) was estimated from available data of Listed Companies with BSE and NSE. The Quasi-Corporate and Unorganized segment (which has a share of more than 20 percent in the Manufacturing sector) has been estimated using IIP of Manufacturing. IIP Manufacturing registered growth rate of (-) 0.4 percent during Q2 of 2019-20 as compared to 5.6 percent during Q2 of 2018-19.
Electricity, gas, water supply and other utilities
Growth also slowed sharply for eelectricity Electricity, Gas, Water Supply and Other Utility Services'.
The sector grew by 3.6 percent as compared to growth of 8.7 percent in Q2 2018-19.