GDP Growth Falls To 4.5%, Worst In Over 6 Years

India’s gross domestic product (GDP) growth rate fell to 4.5 per cent in the July-September quarter (Q2) of this financial year, compared with 5 per cent in the previous quarter and 7.1 per cent in the same quarter of 2018-19, government data showed on Friday.

The lowest rate of expansion in over six years was mainly on account of a weak manufacturing, falling consumer demand and private investment, and a drop in exports due to a global slowdown.

Official data showed that India's fiscal deficit in the first seven months through October stood at Rs 7.2 trillion, or 102.4 per cent of the budgeted target for the current financial year.

Indicating the severity of the economic slowdown, the output of eight core industries declined by 5.8 per cent in October.

Government of India: Quarter 2 Gross Domestic Product (GDP) showing a growth rate of 4.5% https://t.co/ysSTQ3rZAH

— ANI (@ANI) November 29, 2019

Friday’s data disappointed many economists who had expected Quarter 2 GDP growth to be 4.7 per cent.