How Indian Economy has fared in the second quarter?

The Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation has released the estimates of Gross Domestic Product (GDP) for the second quarter (July-September) Q2 of 2018-19.

Indian Economy in the Second Quarter:

• The GDP growth has slowed to 7.1%, from 8.2% in the previous quarter.
• Similarly, the Gross Value Added (GVA) growth has eased to 6.9% in July-September, from 8% in the previous quarter.
• The GDP expansion in the corresponding quarter of the last fiscal year was 6.3%, while GVA growth was 6.1%.
• GDP growth in the first half (April-September) was 7.6%, faster than 6% in the year-earlier period.
• First-half GVA growth was estimated at 7.4%, up from 5.8%.
• Manufacturing growth was at 7.4%, agriculture growth at 3.8%, Construction growth was at 6.8% and mining growth stood at -2.4%.
• Half year [GVA] growth at 7.4%.
• Half year GDP growth is at 7.6% was highest in the world.

What do these numbers say?

• The slowdown was anticipated, given that oil prices had been high and the rupee had weakened against the dollar during the quarter. But the actual numbers had surprised on the downside.
• The reduced growth rate was because of the impact of net exports being in the negative.
• Even the growth in the rate of investments was about 12%, this contribution has been negated by the negative effect of exports.
• The slow growth rates in the construction and mining sector were due to monsoon month’s deceleration.

Easing oil prices and the rupee’s recent rebound is expected to boost third-quarter GDP growth.

Topics: GS-III: Indian Economy Issues Relating to Planning