India’s GDP grows at 6.6% in third quarter of FY2019

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A vegetable market in Mumbai, India's commercial capital. Photo/IAC

India’s Gross Domestic Product (GDP) grew a lower-than-expected 6.6 per cent in the October-December period, the lowest in five quarters, dragged by lower farm and manufacturing growth, government data showed.

India’s GDP growth was revised down to 7 per cent from 7.1 per cent in the second quarter ended September 30, 2018, according to data released by the Ministry of Statistics and Programme Implementation.

However, India beat China to retain the tag of the world’s fastest growing large economy. The Chinese economy grew at 6.4 per cent in the third quarter.

The growth in GDP during 2018-19 is estimated at 7 per cent as compared to the growth rate of 7.2 per cent in 2017- 18, the Ministry of Statistics said. Last month, the Central Statistics Office (CSO) had projected Indian economy to grow at 7.2 per cent for this fiscal under its first advance estimates.

“Real GDP or Gross Domestic Product (GDP) at Constant (2011-12) Prices in the year 2018-19 is likely to attain a level of Rs 141.00 lakh crore, as against the First Revised Estimate of GDP for the year 2017-18 of Rs 131.80 lakh crore, released on 31st January 2019,” CSO said.

The per capita income in real terms (at 2011-12 prices) during 2018-19 is likely to attain a level of Rs 92,718 as compared to Rs 87,623 for the year 2017-18. The growth rate in per capita income is estimated at 5.8 percent during 2018-19, as against 5.7 per cent in the previous year.

Meanwhile, the Reserve Bank of India has pegged GDP growth at 7.4 per cent in 2018-19. For the next financial year, the RBI has projected GDP growth to be in the range of 7.2-7.4 per cent for the first half, and 7.5 per cent in the third quarter, with risks somewhat to the downside.

The next release of quarterly GDP estimate for the March quarter and provisional annual estimates for the year 2018-19 will be on May 31, 2019.

Shekhar Ghosh is consulting editor, Indoasiancommodities.com. He has edited and written for publications like Business India, Business Standard, Business Today, Outlook and many other international publications. He can be reached at shekhar.ghosh@indoasiancommodities.in.

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