Manufacturing sector growth slumps to mere 0.4% in Q1 of 2019-20
India's gross domestic product (GDP) growth moderated to 25-quarters low of 5.0% in Q1 of 2019-20 from 5.8% growth recorded in the previous quarter and 8.0% improvement in the corresponding quarter last year. Quarterly Gross Value Added (GVA) growth also eased to 4.9% in Q1 of 2019-20 from 5.7% in Q4 of 2018-19 and 7.7% in Q1 of 2018-19.The GDP growth moderation has been mainly driven by decline in the GDP growth emanating from the agriculture sector at 2.0% in Q1 of 2019-20 from 5.1% growth in Q1 of 2018-19, while industrial sector growth has plunged to 2.7% from 9.8%. Further, the services sector growth also eased to 6.9% in Q1 of 2019-20 from 7.1% growth in Q1 of 2018-19.
Within the industrial sector, the mining sector growth improved to 2.7% from 0.4% in Q1 of 2018-19, while the utilities sector growth also improved to 8.6% from 6.7%. However, the growth for construction sector moderated to 5.7% from 9.6%, while the manufacturing sector growth dipped to 0.6% from 12.1%.
The services sector growth moderated to 6.9% led by slow growth in the financial, real estate and professional services of 5.9% from 6.5% and trade, hotel, transport and communication have moderated to 7.1% from 7.8%. However, the growth public services improved to 8.5%in Q1 of 2019-20.
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