GDP growth moderates to 3.1 % in March 2020 quarter

Annual GDP growth eases 4.2 % in FY2020

India's Gross Domestic Product (GDP) growth moderated sharply to 3.1% in the quarter ended March 2020 from 4.1% in the preceding quarter and 5.7% growth in the corresponding quarter of last year.

The growth of gross value added has also moderated to 3.0% in the quarter ended March 2020. Among the key sectors, the manufacturing sector has posted a 1.4% decline in output, while recording consistent decline in output for the third straight quarter. The output of the construction sector also declined 2.2%. Further within the industrial sector, the output of the mining and quarrying sector has improved 5.2% and the output of utilities sector gained 4.5% in the quarter ended March 2020.

 

Among the components of services sector, the growth has moderated for the trade, hotel, transport, communication services at 2.6% from 4.3% in the preceding last quarter, while the growth in financial real estate and professional services also eased to 2.4% from 3.3% in the previous quarter. However, the growth of public administration, defence and other services remained in double digit at 10.1% in the quarter ended March 2020.The agricultural sector has exhibited an improvement in growth to 5.9% in the quarter ended March 2020

The annual GDP growth moderated 4.2% in FY2020 from 6.1% in FY2019. Among the key sectors of the economy, the agricultural sector has exhibited and improved growth of 4.0%, while the mining and quarrying sector has returned to positive growth of 3.1% in FY2020. The output of the manufacturing sector was flat, while the output growth of utilities sector moderated to 4.1% and construction sector to 1.1%.

Within the service sector, the output of trade, hotel, transport, communication and services moderated 3.6%, while the growth of financial, real estate and professional services also eased to 4.6%. However, the public administration, defence and other services posted double digit growth of 10% FY2020.

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