GDP growth slumps to 5.8%

  1. According to data released by the Central Statistics Office (CSO), India’s quarterly GDP growth has declined to a five-year low of 5.83% in the last year (January-March) of FY19. Overall growth for FY19 also declined to a five-year low of 6.8%.
  2. China’s economy, in comparison, grew 6.4% in the last quarter but for the full year, India still remained the fastest-growing major economy in the world.
  3. The slowdown in GDP growth in the last quarter has been attributed by economists to slow rural consumption demand, lapses in the manufacturing sector, agricultural distress, and unemployment. Further, stress in the NBFC sector affecting consumption finance is also a major cause behind the slowdown.
  4. Also, according to latest figures released by the Ministry of Statistics and Program Implementation (MoSPI), unemployment in India is at a 45-year high at 6.1%.
  5. Earlier, an unreleased periodic labour force survey by the NSSO had shown an increase in unemployment in the country. However, it was rejected by the government, which termed it as a draft report.

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