India’s GDP Growth Slumps to 5.8% in Fourth Quarter

This means that economic growth for FY'19 is now officially at 6.8%, a five-year low.

New Delhi: India’s economy expanded as its slowest pace in over a year in the fourth quarter of 2018-2019, according to government data released on Friday evening.

Gross domestic product (GDP) growth rose at 5.8% for the quarter that ended March 2019, reinforcing fears that the new Narendra Modi government’s first task would be to revive flagging economic growth. 

Data released by the statistics ministry also showed that the economic growth rate for  FY’19 came in at a five-year low of 6.8%, on the back of a consumption and investment slowdown.

The numbers that were released on Friday are below market expectations: earlier estimates had predicted that Q4 growth would be 6%-6.5% and that growth for the whole financial year would be 7%-7.1%.

Financial Quarter GDP Growth (Constant Prices, 2011-12)
Q1 2018-19 (April-June) 8.0%
Q2 2018-19 (July-Sep) 7.0%
Q3 2018-19 (Oct-Dec) 6.6%
Q4 2019-19 (Jan-March) 5.8%

According to government data, India’s fiscal deficit for 2018-19 stood at 3.4% of GDP, roughly in line with the Interim Budget’s estimate. Spending during the financial year was Rs 23.1 lakh crore, against the revised target of Rs 24.1 lakh crore.

Financial Year GDP Growth
FY’14 6.4%
FY’15 7.4%
FY’16 8%
FY’17 8.2%
FY’18 7.2%
FY’19 6.8%

The rate of growth in eight core infrastructure industries during April came to 2.6%, against 4.9% in the previous month.