GDP slumps to 4.5 pc in Q2 FY20

The economic growth slowed to 4.5 per cent in July to September quarter from 7.1 per cent in the corresponding period of last year, the government data showed on Friday.

The economic growth slowed to 4.5 per cent in the July to September quarter from 7.1 per cent in the corresponding period of last year, the government data showed on Friday. The economy had a weak performance last quarter with the GDP growth rate dropping to 5 per cent.

The slowdown in Q2 FY20 was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement. The weak GDP growth in Q2 was also caused by grim industrial output data which contracted 0.4 per cent during the quarter against 3 per cent expansion in the preceding three months.

Heavy rainfall in August and September along with a delayed withdrawal of the monsoon constrained activities in the mining and construction sectors. It also contributed to a lower demand for electricity from the agricultural and household sectors. In addition, muted industrial activity reduced the demand for electricity generation. (ANI)