India's economic growth on Friday slumped for the fifth straight quarter to an over six-year low of 5 percent in the three months ended June as consumer demand and private investment slowed amid deteriorating global environment.
Having lost the tag of the world's fastest-growing economy earlier this year, India's GDP growth was behind China's 6.2 percent in April-June, its weakest pace in at least 27 years.
The Gross Domestic Product (GDP) of India, Asia's third-largest economy, slumped by larger than expected 5 per cent in April-June, the slowest pace since January-March 2013. The growth stood at 5.8 percent in January-March of 2019 and 8 percent of April-June 2018, according to official data released on Friday.
Government's chief economic adviser K V Subramanian said India's GDP numbers indicate that growth while still high, has shown some slowdown. A similar phenomenon has been observed previously in the last quarter of 2013-14," he said.
"This has been on account of both exogenous and endogenous factors. The government is quite alive to the situation especially global headwinds arising out of deceleration in the developed economic and Sino-American trade conflict which has contributed to the slowdown," he noted.
Prior to the announcement of GDP numbers, the government on Friday announced its second of the three-part stimulus, merging 10 public sector banks into four with a view to boost credit to help revive the economy.
Last week, the first stimulus package was announced that included reduction of taxes, improvement of liquidity in the banking sector (formal and shadow), increased government spending on auto and infrastructure, and accelerated refunds of Goods and Services Tax (GST).
To discuss this sluggish growth trends, CNBC-TV18 spoke with PS Jayakumar, MD and CEO, Bank of Baroda; Abhishek Upadhya, senior economist at ICICI Securities PD; Sudipto Mundle, former chairman of the National Statistics Commission and Himanshu, professor of Economics at JNU.