India’s economic growth dropped to a six-year low of 5% in the April-June quarter of 2019-20, according to official data released on Friday.
The growth rate is the slowest in 25 quarters.
The previous low was recorded at 4.9% in April-June 2012-13. The economic growth was 8% in the same quarter of 2018-19, according to PTI.
The Reserve Bank had marginally lowered the GDP growth projection for 2019-20 to 6.9% from 7% projected earlier in the June policy, and underlined the need for addressing growth concerns by boosting aggregate demand.
The manufacturing sector grew 0.6% in April-June 2019 from 12.1% in the same quarter of 2018-19. Agriculture, forestry and fishing sector, as The Economic Times points out, grew by 2% as compared to 5.1% in first quarter of last year.
Construction sector growth too slowed to 5.7% from 9.6% earlier.
Analysts, according to Reuters, said the economic slowdown could continue for the next two three years as the economy faces serious structural issues.
Chief Economic Adviser KV Subramanian said the government is taking all steps to revive the economy and expressed confidence that the country would be on a high-growth path “very soon”.
The government remains committed to its fiscal glide path, he added.
“The government is alive to the situation and has taken several measures including mega merger of banks (announced during the day),” he was quoted as saying by PTI.
(With PTI and Reuters inputs)