India's gross domestic product (GDP) growth rate in the January-March quarter of 2018-19 slowed to 5.8 percent, due to poor performance in the agriculture and manufacturing sectors, as per the data released by the government on Friday.
According to the Central Statistics Office (CSO), GDP growth during 2018-19 fiscal stood at 6.8 percent, lower than 7.2 percent in the previous financial year.
The growth in the gross domestic product (GDP) was slowest since 2014-15. The previous low was 6.4 percent in 2013-14. The fourth quarter growth was below China's 6.4 percent. The economy grew 6.6 percent in the third quarter, 7.1 percent in the second quarter and 8.2 percent in the first quarter of FY19.
The growth of the eight core sector industries during April too witnessed a slowdown. The expansion was at the rate of 2.6 percent. These industries contribute about 40 percent to the overall factory output of the country.
There was, however, some relief on the front of government finances as the fiscal deficit for 2018-19 remained within the revised Budget target of 3.4 per cent of the GDP.
The CSO data on national income revealed that the annual Gross Domestic Product (GDP) for fiscal 2018-19 (at 2011-12 prices) too was at a five-year low of 6.8 percent. The GDP growth was 7.2 percent in 2017-18.
The GDP in the fourth quarter of the fiscal ending March 2019 was 5.8 percent, lower than 6.4 percent growth posted by China in January-March 2019 quarter, thus losing the world's fastest major economy tag.
The CSO data showed that Gross Value Addition (GVA) decelerated to 5.7 percent in the fourth quarter from 7.9 percent in January-March 2017-18. The decline in the economic activity has been mainly on account of a steep decline in growth in the agriculture and manufacturing sectors.
The GVA in agriculture, forestry and fishing sectors contracted by 0.1 per cent as against an expansion of 6.5 percent recorded in the fourth quarter of 2017-18.
The slowdown was quite steep in the key manufacturing segment as the GVA expansion was meagre 3.1 percent down from 9.5 per cent during fourth quarter of 2017-18.
The 'financial, real estate and professional services' segment, however, showed improvement with the growth rate moving up to 9.5 per cent in the last quarter of 2018-19 from 5.5 percent in the comparable period of the preceding fiscal.
On annual estimates of expenditures of GDP, 2018-19, the CSO said the rates of Private Final Consumption Expenditure (PFCE) at current and constant (2011-12) prices during 2018-19 are estimated at 59.4 percent and 56.9 percent, respectively, as against the corresponding rates of 59 percent and 56.3 percent, respectively in 2017-18.
In terms of GDP, the rates of Gross Fixed Capital Formation (GFCF) at current and constant (2011-12) prices during 2018-19 have been estimated at 29.3 percent and 32.3 percent, respectively, as against the corresponding rates of 28.6 percent and 31.4 percent, respectively, in 2017-18.
As per the CSO, India's per capita income estimated to have risen by 10 per cent to Rs 10,534 a month during fiscal ended March 2019, government data on national income showed Friday. In preceding fiscal 2017-18, the monthly per capita income stood at Rs 9,580.
The per capita income at current prices during 2018-19 is estimated to have attained a level of Rs 1,26,406 (Rs 10,533.83 monthly) as compared to the estimated for the year 2017-18 of Rs 1,14,958 (Rs 9,579.83 a month).
(With inputs from PTI)