India clocked a 7.1% GDP growth in the second quarter of the financial year 2018-19, down from previous quarter’s stunning 8.2%. This, however, is still higher than China’s economic growth of 6.5% during the same quarter.
The Reuters polls had estimated a GDP growth of 7.4%, while Chief Economist of State Bank of India Soumya Kanti Ghosh said that the GDP growth in the second quarter had a favourable base effect. The Q2 GDP growth, despite moderation, is also higher than 6.3% recorded in the same quarter last year.
In the first quarter, India clocked an 8.2% GDP growth buoyed by the manufacturing sector growth, while the agriculture sector also showed improvement. Economists said that the GDP growth may have slowed down due to dismal consumption and investment trends following a liquidity squeeze in the non-banking finance companies.
“GDP at constant prices in Q2 of 2018-19 is estimated at Rs 33.98 lakh crore, as against Rs 31.72lakh crore in Q2 of 2017-18, showing a growth rate of 7.1%,” Central Statistics Office (CSO) said in a statement.
Key figures in a nutshell
- India Q2 GDP: 7.1% vs 8.2%
- India Q2 GVA: 6.9% vs 8%
- Agriculture: 3.8% vs 5.3%
- Mining and Quarrying: 0.1% vs -2.4%
- Electricity, Gas, Water Supply & Other Utility Services: 7.3% vs 9.2%
- Construction: 7.8% vs 8.7%
- Trade, Hotel, Transport, Communication & Services related to Broadcasting: 6.8% vs 6.7%
- Financial, Real Estate & Professional Services: 6.3% vs 6.5%
- Public Administration, Defence& Other Services: 10.9% vs 9.9%