New Delhi: India’s economic growth in the October-December quarter of the 2018-2019 financial year (FY) was the slowest recorded in five quarters, government data released on Thursday evening has revealed. The gross domestic product (GDP) for the FY rose by 6.6% in the third quarter on the back of lower consumer spending and slightly less growth in the agricultural and manufacturing sectors. In the first and second quarters, the GDP growth was recorded at 8.2% and 7.1%, which were revised downwards on Thursday to 8% and 7% respectively. Slower growth in the third quarter, along with the downward revisions for the first and second quarters, has brought down the overall projection for growth in 2018-2019 to 7% from the earlier estimate of 7.2%. In GVA (gross value added) terms, the Indian economy grew at 6.3% in Q3 FY’19. Statistics ministry data also showed that the growth decline was also impacted by a slowdown in investments and consumer spending. According to Reuters, consumer spending, which accounts for almost 60% of the economy, “slowed to an 8.4% rise annually in Q3, compared to a revised 9.9% rise in the previous quarter”. Gross fixed capital formation – which include infrastructure spending – rose 10.6% compared with a revised 10.2% annual increase in the previous quarter. Table – 1 India’s Economic Growth Trends Over Past Quarters Financial Quarter GDP Growth GVA Growth Q2 FY’18 6.3% 6.1% Q3 FY’18 7.0% 6.6% Q4 FY’18 7.7% 7.6% Q1 FY’19 8.2%* 8% Q2 FY’19 7.1%* 6.9% Q3 FY’19 6.6% 6.3% *These figures have now been revised. (See Table 2) Table – 2 – Revisions in Quarterly GDP Data Financial Quarter Earlier GDP Growth Revised GDP Growth Q1 FY’19 8.2% 8.0% Q2 FY’19 7.1% 7.0% Rupa Rege Nitsure, group chief economist at L&T Finance Holdings said in a statement, “I had expected the overall GDP growth for FY19 to get revised downwards, as the farm sector had suffered due to extremely uneven rainfall, depleted water reservoir levels in key agrarian states and their impact on sowing of foodgrains.” “Manufacturing and small services too had slowed due to a crisis of confidence for the NBFC sector during September to December 2018. The GDP data has correctly captured these events that had impacted growth. In retrospect, the RBI’s policy actions on February 7 get strongly vindicated,” Nitsure added. According to the government’s figures, the agriculture sector grew at 2.7% in Q3 compared to 4.2% in Q2, while manufacturing grew at 6.7% in Q3 compared to 6.9% in Q2. (With Reuters inputs)<doc-sep>(With agency inputs) NEW DELHI: The country's GDP (gross domestic product) growth for the October-December (Q3) slowed to 6.6 per cent from 7 per cent in the previous (July-September) quarter, government data showed on Thursday. This is the slowest GDP growth rate in five quarters since July-September 2017, dragged by weak consumer demand.Consumer spending, which accounts for near 60 per cent of the economy, slowed to an 8.4 per cent rise annually in the December quarter, compared to a revised 9.9 per cent rise in the previous quarter.The data revised the country's 2018-19 GDP forecast to 7 per cent from 7.2 per cent. The Q2 GDP number has also been revised to 7 per cent from 7.1 per cent.A poll conducted by news agency Reuters had predicted that the economy likely grew at 6.9 per cent in the third quarter ended in December. Forecasts for GDP ranged between 6.3 per cent to 7.9 per cent and suggested a significant fall from a more than two-year high of 8.2 per cent in April-June 2018.Commenting on the GDP figures, Aurodeep Nandi, India economist, Nomura told Reuters that, "The GDP growth number essentially shows the cyclical slowdown entrenching itself. Going ahead we do expect further moderation on tighter financial conditions, weaker global demand and political uncertainty. Therefore, despite budget and policy interest rates easing, there are enough growth headwinds to overpower the policy tailwinds. "He added, "With low food prices keeping RBI's headline inflation projection for end-2019 below 4 per cent, the dullness of growth prospects serves as a recipe for a 25 basis point rate cut by in April. "A slowing economy could be a cause of concern for Prime Minister Narendra Modi ahead of the general elections due by May. This may hamper the government's plans to boost lending and lift growth before the elections. "Considering the CSO (Central Statistics Office) now expects full-year FY19 advance GDP growth estimate at 7 per cent, we expect growth in the March quarter at 6.1-6.4 per cent," Tanvee Gupta Jain, chief India economist, UBS Securities India, told Reuters.In another set of official data released showed that eight core industries grew at the slowest pace in 19 months in January as the production of crude oil, refinery products and electricity contracted. The infrastructure sectors expanded by 1.8 per cent in January 2019, the lowest growth rate since June 2017 when the core sector grew by 1 per cent.<doc-sep>India's economic growth slowed to a 5-quarter low of 6.6 per cent in October-December period of this fiscal, according to government data released on Thursday. The Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 7 per cent in October-December quarter of the previous financial year. "GDP at Constant (2011-12) Prices in Q3 of 2018-19 is estimated at Rs 35.00 lakh crore, as against Rs 32.85 lakh crore in Q3 of 2017-18, showing a growth rate of 6.6 per cent. "GDP growth rates for Q1 and Q2 of 2018-19 at Constant Prices are 8.0 per cent and 7.0 per cent respectively," the Central Statistics Office (CSO) said in a statement. According to the statement, GDP growth during 2018-19 is estimated at 7 per cent as compared to 7.2 per cent in 2017-18. Earlier last month, the CSO had estimated GDP growth of 7.2 per cent for this fiscal under its first advance estimates.<doc-sep>New Delhi: The Central Statistics Office (CSO) on Thursday revised downward its GDP growth forecast for 2018-19 to 7% from 7.2% projected earlier. It estimated the India’s economy to have grown at 6.6% in the December quarter (Q3), lower than Reuters estimate of 6.9% for the same quarter and slowest in five quarters. The GDP data for Q1 (April-June) and Q2 (July-September) were also revised to 8% and 7%, respectively. While agriculture is estimated to grow at 2.7%, manufacturing is expected to accelerate to 8.1% in 2018-19. However, trade, hotel and transportation sector is expected to decelerate to 6.8% during the year. On 7 February, Reserve Bank of India's (RBI) monetary policy committee (MPC) cut the repo rate by 25 basis points and changed its policy stance to "neutral" from "calibrated tightening", taking into consideration the benign headline retail inflation and threat of a global slowdown. One basis point is one-hundredth of a percentage point. RBI governor Shaktikanta Das had at that time said that the shift in monetary policy stance provides flexibility and room to address challenges to sustained growth of the Indian economy over the coming months, as long as the inflation outlook remains benign. “The decisions of the MPC in this regard will be data-driven and in consonance with the primary objective of monetary policy to maintain price stability while keeping in mind the objective of growth," Das had said. India’s retail inflation slowed to a 19-month low in January while factory output, dragged down by a negative base effect, remained subdued in December—giving the central bank enough wiggle room to effect another rate cut. CSO data released earlier this month showed consumer price index (CPI), a measure of retail inflation, stood at 2.05% in January. India's factory output, measured by index of industrial prodcution (IIP) recovered to 2.4% in December from 0.3% in November. To be sure, India still grew faster than China in Q3—thus retaining its tag as the world's fastest growing makor economy. China grew by 6.4% in the December quarter. This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed Subscribe to Mint Newsletters * Enter a valid email * Thank you for subscribing to our newsletter. Never miss a story! Stay connected and informed with Mint. Download our App Now! ! Topics<doc-sep>
NEW DELHI: The country’s economic growth slowed to a five-quarter low in the October-December period of 2018-19 and the Central Statistics Office (CSO) also revised downwards the growth estimates for the current fiscal year to 7% from the earlier 7.2%.Data released by the CSO on Thursday showed gross domestic product growth at the end of the December quarter, the third quarter of the country’s fiscal year was 6.6%, slower than the previous quarter’s 7% expansion and lower than the 7.7% growth in the third quarter of 2017-18. But Thursday’s data still enables India to retain the tag of the fastest growing major economy in the world as China grew 6.4% in the same quarter. The government expects the growth in the current fiscal year to be in the 7% to 7.5% range.The data showed some crucial signs of revival with private consumption helping overall growth while investments displayed signals of a turnaround but at a slow pace. Construction, utility services and financial, real estate and professional services posted higher growth. The key manufacturing sector displayed some signs of sluggishness compared to the previous quarters. The vital farm sector slowed to 2.7% in the December quarter, lower than the 4.6% expansion posted in the same year earlier period, which economists attributed to unfavourable weather and uneven monsoon rainfall. The government has unveiled a direct benefit transfer for small farmers as a measure to tackle distress in the agriculture sector.Earlier this month, the Reserve Bank of India (RBI) cut interest rates by 25 basis points, the first cut in 18 months , to revive growth against the backdrop of slowing inflation. It also changed its stance to neutral hinting that it may cut rates if inflation remains within its comfort levels. Economists said the slower GDP number print in the December quarter may prompt the central bank to cut rates again.“The lower growth in GDP could prompt the RBI to lower interest rates as economic growth has been cited as a concern. This would, however, be contingent on the inflation reading for the coming months. We revise lower our GDP estimate for the year from 7.4% to 6.9%,” said Madan Sabnavis, chief economist at Care Ratings.