GDP numbers raise some serious questions about the state of the economy

Low index of industrial production growth coupled with less than 5% growth in corporate sector topline has been indicative of a low economic performance in the quarter

GDP growth
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Madan Sabnavis
The GDP growth number for Q1-FY20 was not expected to be satisfactory with estimates being in the region of 5.5%. However, the 5% growth, which is now a six-year low, does raise some serious questions about the state of the economy, given that prima facie our economy does seem to be one of the best performing economies in the world. The problem remains unchanged with the manufacturing sector being the drag. Support has tended to come more from the services segments, which is now a regular feature of the profile of growth. 

Low index of industrial production (IIP) growth

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First Published: Aug 30 2019 | 6:28 PM IST

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