India’s GDP Staggered Due to Slowed Manufacturing, Mining
India’s growth and GDP have taken a backseat amid the staggering manufacturing, mining and agricultural activities. The growth momentum has been slowed from 8.2 percent to 7.1 percent in the second quarter of 2018-19.
However, on a year-on-year basis, the GDP growth has risen, growing at 6.3 percent during the corresponding quarter of last year.
According to the Central Statistics Office, the GDP growth rate at 2011-12 prices fell to 7.1 percent from 8.2 percent in Q1, 7.7 percent in Q4 of 2017-18 and 6.3 percent in the corresponding period of the previous fiscal.
Besides, the growth rate of gross value added on a sequential basis during Q2 fell to 6.9 percent from 8 percent in Q1. It grew by 6.1 percent during the corresponding period of the previous fiscal.
“GDP at constant (2011-12) prices in Q2 of 2018-19 is estimated at Rs. 33.98 lakh crore, as against Rs. 31.72 lakh crore in Q2 of 2017-18,” said the Q2 estimates released by the CSO.
“Quarterly GVA (Basic Price) at constant (2011-2012) prices for Q2 of 2018-19 is estimated at Rs. 31.40 lakh crore, as against Rs. 29.38 lakh crore in Q2 of 2017-18, showing a growth rate of 6.9 percent over the corresponding quarter of previous year.”
The GVA includes taxes, but excludes subsidies.
As per the data, the economic activities which registered growth of over 7 percent on a YoY basis in Q2 were manufacturing, electricity, gas, water supply and other utility services, construction and public administration, defense and other services.
“The growth in the agriculture, forestry and fishing, mining and quarrying, trade, hotels, transport, communication and services related to broadcasting and financial, real estate and professional services is estimated to be 3.8 percent, (-) 2.4 percent, 6.8 percent and 6.3 percent respectively during this period,” the CSO said in the estimates document.
Sector-wise, YoY quarterly GVA at basic prices for Q2 2018-19 from the agriculture, forestry and fishing sector showed a growth of 3.8 percent from 2.6 percent in Q2 2017-18.
In addition, quarterly GVA in Q2 2018-19 from the manufacturing sector grew at 7.4 percent as compared to 7.1 percent.
“IIP manufacturing registered growth rate of 5.5 percent during Q2 of 2018-19 as compared to 2.5 percent during Q2 of 2017-18,” the estimates document said.
However, the quarterly GVA from the mining and quarrying sector declined by (-) 2.4 percent as compared to grow of 6.9 percent.
On a sequential basis, the GVA growth of the manufacturing sector in Q2 dropped to 7.4 percent from 13.5 percent in Q1, while for agriculture it fell to 3.8 percent from 5.3 percent and was negative in the case of mining sector at (-) 2.4 percent from a marginal rise of 0.1 percent.