GDP growth for 2018-’19 revised downwards to 6.1%

Earlier it was estimated to be 6.8%. However, slowdown in mining, manufacturing and farm sectors forced the National Statistical Office to change the figures.

The government on Friday revised downwards the economic growth rate for 2018-’19 to 6.1% from 6.8% estimated earlier primarily because of slowdown in sectors such as mining, manufacturing and farm, PTI reported.

“Real GDP or GDP at constant [2011-12] prices for the years 2018-’19 and 2017-’18 stand at Rs 139.81 lakh crore and Rs 131.75 lakh crore, respectively, showing growth of 6.1% during 2018-’19 and 7% during 2017-’18,” the National Statistical Office said in a revised national account data released on Friday.

During 2018-’19, at constant prices, the growth rates of primary sector –
comprising agriculture, forestry, fishing and mining and quarrying – secondary sector, comprising manufacturing, electricity, gas, water supply and other utility services, and construction, and tertiary sector have been estimated at 1%, 6% and 7.7%, as against 5.8%, 6.5% and 6.9% in the previous year.

Earlier in the day, the Economic Survey for 2020-’21 projected that Gross Domestic Product would grow between 6% and 6.5% in the next financial year. The survey predicted industrial growth to be 2.5%.

The International Monetary Fund has also said that the Indian economy is estimated to grow 4.8% in 2019-’20, and increase to 5.8% in 2020-’21 and 6.5% in 2021-’22. In October, it had predicted an expansion of 6.1% in 2019-’20. India’s “domestic demand has slowed more sharply than expected amid stress in the nonbank financial sector and a decline in credit growth”, the IMF added.

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