GDP growth sees sharp drop to 5 percent
New Delhi, Aug 30 (IBNS): India's Gross Domestic Product (GDP) growth for the first quarter of the financial year 2019-20 dropped to touch a figure of five percent, government figures unveiled on Friday said.
It is a sharp drop of 0.8 per cent points in comparison to the quarter that ended in March.
"GDP at Constant (2011-12) Prices in Q1 of 2019-20 is estimated at `35.85 lakh crore, as against `34.14lakh crore in Q1 of 2018-19, showing a growth rate of 5.0 percent," read a government statement.
"Quarterly GVA at Basic Price at Constant (2011-12) Prices for Q1 of 2019-20 is estimated at `33.48 lakh crore, as against `31.90 lakh crore in Q1 of 2018-19, showing a growth rate of 4.9 percent over the corresponding quarter of previous year," it said.
The economic activities which registered growth of over 7 percent in Q1 of 2019-20 over Q1 of 2018-19 are ‘Electricity, Gas, Water Supply & Other Utility Services’, ‘Trade, Hotels, Transport, Communication and Services Related to Broadcasting’ and ‘Public Administration, Defence and Other Services’. The growth in the ‘Agriculture, Forestry and Fishing’, ‘Mining and Quarrying’, ‘Manufacturing’, ‘Construction’ and ‘Financial, Real Estate and Professional Services’ is estimated to be 2.0 percent, 2.7 percent, 0.6 percent, 5.7percent, and 5.9 percent, respectively, during this period.
The first quarter estimates are based on agricultural production during Rabi season of 2018-19 (which ended in June 2019) obtained from the Department of Agriculture, Cooperation & Farmers Welfare,for Livestock sector, estimates of production, mainly in the form of production targets for Milk, Egg, Meat and Wool from the Department of Animal Husbandry & Dairying and Fish production data from Department of Fisheries have been used.
Index of Industrial Production (IIP); monthly accounts of Union Government Expenditure maintained by Controller General of Accounts (CGA) and of State Government expenditure maintained by Comptroller and Auditor General of India (CAG) for the period April-June 2019-20 have been used. With the introduction of Goods and Services Tax (GST) from 1st July 2017 and consequent changes in the tax structure, the total tax revenue used for GDP compilation includes non-GST revenue and GST revenue. Performance of key sectors like Transport including Railways, Road, Air and Water Transport etc., Communication, Banking and Insurance during the period April-June 2019-20 has been taken into account while compiling the estimates. Performance of the Corporate sector during April-June 2019-20 based on data received from BSE / NSE has been taken into account.
Quarterly GVA at Basic Pricesfor Q1 2019-20 from ‘Agriculture, Forestry and Fishing’ sector grew by 2.0percent as compared to growth of 5.1percent in Q1 2018-19. The crops including fruits and vegetables account for about 53percent, the livestock products 32 percent andforestry& fisheries 15 percent share of GVA in ‘Agriculture, Forestry and Fishing’ sector.
Mining and Quarrying
Quarterly GVA at Basic Pricesfor Q1 2019-20 from ‘Mining and Quarrying’ sector grew by 2.7 percent as compared to growth of 0.4 percent in Q1 2018-19. The key indicators of Mining sector, namely, Production of Coal, Crude Oil & Natural Gas and IIP Mining registered growth rates of2.7percent, (-) 6.8 percent, (-)0.5 percent and 3.0 percent respectively, during Q1 of 2019-20 as compared to 12.9 percent, (-)2.4 percent, 0.1 percent and 5.4 percent, respectively, during Q1 of 2018-19.
Manufacturing
Quarterly GVA at Basic Prices for Q1 2019-20 from ‘Manufacturing’ sector grew by 0.6 percent as compared to growth of 12.1 percent in Q1 2018-19. The growth of organisedsector (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 3.2 percent during Q1 of 2019-20 as compared to 5.1 percent during Q1 of 2018-19.
Electricity, Gas, Water Supply and Other Utility Services
Quarterly GVA at Basic Pricesfor Q1 2019-20 from ‘Electricity,Gas, Water Supply and Other Utility Services’ sector grew by 8.6percent as compared to growth of 6.7 percent in Q1 2018-19. The key indicator of this sector, namely IIP of Electricity, registered growth rate of 7.2 percent during Q1 2019-20 as compared to 4.9 percent in Q1 2018-19.
Construction
Quarterly GVA at BasicPricesfor Q1 2019-20 from ‘Construction’ sector grew by 5.7 percent as compared to growth of 9.6 percent in Q1 2018-19. Key indicators of Construction sector, namely, production of Cement, consumption of finished Steel and IIP of Non-Metallic Mineralsregistered growth rates of 1.2 percent, 6.8 percent and (-)1.1 percent respectively, during Q1 of 2019-20 as compared to 16.3 percent, 9.2 percent and 12.3 percent, respectively, in Q1 of 2018-19.
Gross Fixed Capital Formation (GFCF) at Current Prices is estimated at`14.55 lakh crore in Q1 2019-20 as against`13.59 lakh crore in Q1 2018-19. At Constant (2011-12) Prices, the GFCF is estimated at`11.66 lakh crore in Q1 2019-20 as against`11.21 lakh crore in Q1 2018-19. In terms of GDP, the rates of GFCF at Current and Constant (2011-12) Prices during Q1 2019-20 are estimated at29.7 percent and32.5 percent, respectively, as against the corresponding rates of30.0 percent and32.8percent, respectively, in Q1 2018-19.
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