India gdp growth economic slowdown essay drishti ias
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It is the slowest growth in over six years since 2013.
It marked the fifth straight quarterly decline in growth — the first time since June 1997 that such a prolonged slump has been recorded.
The slowdown is because of a sharp deceleration in consumer demand and tepid investment.
Consumption which was the bedrock of growth in the past few years, collapsed to an 18-quarter low of 3.1% from 10.6% in the March quarter of 2018-19.
Investments grew only 4%, up from 3.6% in the previous quarter.
This slowdown in investment and consumer demand have further derailed manufacturing, which grew just 0.6%.
A meagre 2% rise in farm sector added to the demand slowdown.
Automobile sales, a barometer of the economy,have declined sharply in recent months, forcing production cuts and jobs losses.
Weak global economy and trade tensions have kept export growth subdued