Statsguru: Decoding Indian economy's growth risks and muted outlook

The stress lies in the manufacturing and construction sectors, the biggest employers of semi-skilled labour

The latest data has darkened the outlook for the Indian economy. The National Statistical Office’s estimate and projection puts gross domestic product (GDP) growth at 4.7 per cent in the second half of FY20 (Chart 1). 

The stress lies in the manufacturing and construction sectors (Chart 2), the biggest employers of semi-skilled labour. Farm sector in Q4 could register the best growth in three years, but public spending is likely to moderate (Chart 2). 

Further, numbers show a deeper collapse in investments. However, the annual estimate of 5 per cent growth has been retained, courtesy a likely uptick in investments