Manufacturing dip pulls Q1 growth rate to 5%

New Delhi, Aug 30 (IANS) Severe slowdown in manufacturing activity in the country pulled India's Q1 2019-20 growth rate to 5 per cent, the fourth successive quarter of decline in growth rate on the trot.

From 8 per cent during Q1FY19 to 5 per cent in this quarter, the GDP has fallen by three per cent in barely a year.

On a sequential basis, the growth rate came lower than the 5.8 per cent in Q4 of 2018-19.

According to National Statistical Office (NSO), the GDP at 'Constant (2011-12) Prices' in Q1 of 2019-20 is estimated at Rs 35.85 lakh crore, as against Rs 34.14 lakh crore in Q1 of 2018-19, showing a growth rate of 5 per cent.

Besides the data showed that Gross Value Added (GVA) growth rate during the first quarter of 2019-20 on a YoY basis fell to 4.9 per cent, from 7.7 per cent during the like period of the previous fiscal.

The GVA includes taxes, but excludes subsidies.

"GVA at 'Basic Price at Constant (2011-12) Prices' for Q1 of 2019-20 is estimated at Rs 33.48 lakh crore, as against Rs 31.90 lakh crore in Q1 of 2018-19, showing a growth rate of 4.9 per cent over the corresponding quarter of previous year," the NSO said in a statement.

The GVA includes taxes, but excludes subsidies.

"The economic activities which registered growth of over 7 per cent in Q1 of 2019-20 over Q1 of 2018-19 are 'electricity, gas, water supply and other utility services', 'trade, hotels, transport, communication and services related to broadcasting' and 'public administration, defence and other services'."

"The growth in the 'agriculture, forestry and fishing', 'mining and quarrying', 'manufacturing', 'construction' and 'financial, real estate and professional services' is estimated to be 2 per cent, 2.7 per cent, 0.6 per cent, 5.7 per cent, and 5.9 per cent, respectively, during this period."