Indian economy slowed down in 2019
Growth was already expected to shock in the fourth quarter due to declining industrial production of various sectors and cuts in government spending, but no one was expecting the growth rate to fall below 6 percent.
The Central Statistics Office has released all the figures related to GDP and employment on Friday. India's Gross Domestic Product (GDP) growth rate has come down to a five-year low. The Indian economy growing as the world's fastest economy has reached its five-year low. GDP growth rate has come down to 5.8% in the fourth quarter of FY 2018-19.
According to the data released by the government on Friday, the country's GDP growth rate was 6.8 percent in the financial year 2018-19.
Statistics related to GDP show that the country's GDP growth has come down to 6% this quarter. The country's economic growth rate i.e. GDP slowed to 5.8 percent in the fourth quarter of FY 2018-19, which was 8.1 percent in the same quarter a year ago. This is the lowest level of GDP in the last five years. GDP growth rate was 6.8 percent in FY 2018-19 as compared to 7.2 percent in the previous financial year. financial year deficit was 3.39 percent of GDP (GDP) in FY 2018-19, which is lower than the revised estimate of 3.4 percent of the budget.
The growth rate of eight basic industries declined to 2.6 percent in April from 4.7 percent in the same month last year.
Growth has fallen due to these reasons
The auto industry is expected to shed close to a million direct and indirect jobs due to a decline in vehicle sales. The ministry says as the real GDP growth has seen a decline, private consumptions in FY19 Q4 has also declined, which is reflected in the drop of growth of two-wheeler sales.
According to the data, the main reason for the decline in GDP growth rate has been the poor performance of major sectors.
Growth rate in agriculture, forestry and fisheries sector fell from 5.0 per cent to 2.9 per cent, mining industry from 5.1 per cent to 1.3 per cent, electricity, gas, pan sectors including 8.6 per cent to 7.0 per cent, hotel, transport, communication etc. from 7.8 per cent. It has come down to 6.5 percent. However, the manufacturing sector has grown from 5.9 per cent to 6.9 per cent, which is a bit of relief.
Unemployment at 45-year high
The central government has released the unemployment data for the first time. The unemployment rate in India reached a 45-year high of 6.1 percent in 2017-18, the highest in the last 45 years (after 1972-73). Earlier a newspaper had also leaked this data. According to the report, the unemployment rate was 5.3 percent in rural areas and 7.8 percent in urban areas.
In fact, growth was already expected to shock in the fourth quarter due to declining industrial production of various sectors and cuts in government spending, but no one was expecting the growth rate to fall below 6 percent. The alarm over the economic condition is not merely a reflection of a slowdown in GDP growth but also the poor quality of growth.