New Delhi: The coumtry's economy grew at its lowest pace in 26 quarters or 6 and 1/2 years in july-sept period of current fiscial year , dragged down by contraction in the crucial manufacturing sector, piling pressure on the govenment to unlish fresh measures to revive growth and lift sentiment.
Data released by national statistics office (NSO) ,on friday should gross domestic product grew by 4.5% in the september quarter, slower than 5% in the previous quarter and lowest since the 4.3% expansion in the january-march quarter of 2012-13.
the manufacturing sector contracted 0.1% in the september quarter , the first decline in the 9 quarters highlighting the lack of demand in the economy. This is inline with contraction in factory output and core sector numbers seperate data released on friday showed the 8 core sector numbers.
Seperate data released on friday showed 8 core sectors spanning coal , crude oil , natural gas, refinery products, fertilizers , steel , cement , electricity , which account 40%of the index of industrial production , contracted 5.8% in october , its sharpest slide in the new data series with 2011-12 as the base year . Thsi means that the witness has continued in the 3rd quarter too.
The slowdown also triggered a political slugfest with former prime minister Manmohan singh terming the 4.5% number unacceptable . Chief economic adviser Krishnamurthy Subramanian said the fundamentals of Indian economy continued to be strong.
economist said they expect sum pickup in the quarter ahead but pegged overall growth for 2019-20 in the 5.5% to 5.6% range , way below the 7% growth estimated earlier.
in terms of quarterly growth , India has lost the tag of the fastest growing economy to china which posted growth of 6% in september quarter , The slowest pace in 27- and a half years as expansion was heard by US -CHINA trade war . the global economy is also facing a slowdown and this has heard the demand for India's export which have slummed and recent months.
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