New Delhi, November 29: Reflecting the slowdown in the economy, the Indian GDP growth for the second quarter (July-September) of 2019-20 stood at 4.5 per cent, government data showed here on Friday.
New Delhi, November 29: Reflecting the slowdown in the economy, the Indian GDP growth for the second quarter (July-September) of 2019-20 stood at 4.5 per cent, government data showed here on Friday.
The GDP rate in the second quarter (Q2) has further shrunk from six-year low of 5 per cent in June quarter.
According to the data from National Statistical Office (NSO), Ministry of Statistics and Programme Implementation, GDP at constant (2011-12) prices in Q2 of 2019-20 is estimated at Rs 35.99 lakh crore, as against Rs 34.43 lakh crore in Q2 of 2018-19, showing a growth rate of 4.5percent.
Quarterly Gross Vale Added (GVA) (basic price) at constant (2011-2012) prices for Q2 of 2019-20 is estimated at Rs 33.16 lakh crore, as against Rs 31.79 lakh crore in Q2 of 2018-19, showing a growth rate of 4.3 per cent over the corresponding quarter of previous year.
The Private Final Consumption Expenditure (PFCE) at Current Prices is estimated at RS 29.42 lakh crore in Q2 of 2019-20 as against Rs 27.28 lakh crore in Q2 of 2018-19.
In terms of GDP, the rates of PFCE at Current and Constant (2011- 2012) Prices during Q2 of 2019-20 are estimated at 59.3 per cent and 56.3 per cent, respectively, as against the corresponding rates of 58.3 per cent and 56.1 per cent respectively in Q2 of 2018- 19. Growth rates of PFCE at Current and Constant Prices are estimated at 7.8 per cent and 5.1 per cent during Q2 of 2019-20 as compared to 14.4 per cent and 9.8 per cent respectively during Q2 of 2018-19.
The Government Final Consumption Expenditure (GFCE) at Current Prices is estimated at Rs 6.92 lakh crore in Q2 of 2019-20 as against Rs 5.82 lakh crore in Q2 of 2018-19.
“Q2 GDP, which is at 4.50 per cent, indicates a slump in economic activity and has become quite pronounced after a slip to 5 per cent in the Q1. This leads up to an annual growth rate close to 5 per cent. A stronger fiscal stimulus is required to stem this fall without which it could be still lower as we move into the next financial year. Measures to stimulate demand needs to be taken immediately, in the absence of which counter cyclical actions may not bear fruit,” said Joseph Thomas - Head of Research, Emkay Wealth Management.
The Gross Fixed Capital Formation (GFCF) at Current Prices is estimated at Rs 13.56 lakh crore in Q2 of 2019-20 as against Rs 13.68 lakh crore in Q2 of 2018-19.
"The GDP growth figure is as per our estimate for Q2 FY20. The stock market has been trending lower in the last couple of trading sessions, in anticipation of poor numbers. While there may be a mild negative reaction on Monday, it will not change the medium term trajectory for equities,” said Amar Ambani, Senior President and Head of Research – Institutional Equities, YES Securities.
The fiscal deficit for the period of April-October stood at 102.4 per cent of the full year target. The fiscal deficit for the full year stood at Rs 7.2 lakh crore compares to Rs 6.48 lakh crore. As announced in the Union Budget, the fiscal deficit is projected at 3.3 per cent.
The revenue gap for the April to October period stood at Rs 5.46 lakh crore.
Even the eight core industries output has shrunken to 5.8 per cent in October.