India's GDP growth rate slows to 5.8% in Jan-March quarter, slowest in two years

WION Web Team
New Delhi, Delhi, IndiaUpdated: May 31, 2019, 06:07 PM IST

File photo Photograph:(Zee News Network)

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The numbers were way below the forecast of 6.5 per cent for the March quarter and 7.1 per cent for FY19.

India's gross domestic product (GDP) growth in the January-March quarter of 2018-19 slipped to 5.8 per cent against 6.6% in the third quarter, due to poor performance in agriculture and manufacturing sectors, official data released by Central Statistics Office showed.

The Central Statistics Office (CSO) also revealed that GDP growth during 2018-19 fiscal stood at 6.8 per cent, lower than 7.2 per cent in the previous financial year.

The growth in gross domestic product (GDP) was slowest since 2014-15. The previous low was 6.4 per cent in 2013-14.

The fourth quarter growth was below China's 6.4 per cent.The slowdown in the economy will place India behind China's pace for the first time in nearly two years.

Meanwhile, the fiscal deficit for 2018-19 came in at 3.39 per cent of GDP, marginally lower than 3.4 per cent estimated in the revised estimates of the Budget, mainly due to increase in non-tax revenue and lower expenditure.

In absolute terms, fiscal deficit at the end of March 31, 2019, stood at Rs 6.45 lakh crore as against Rs 6.34 lakh crore in the revised estimates of Budget.

The fiscal deficit for 2018-19 works out to be 3.39 per cent of GDP, as per data released by Controller General of Accounts (CGA).

(With inputs from agencies)