National Statistical Office released estimates for  Gross Domestic Product (GDP) for first quarter of FY 2019-2020 on Friday. India's GDP grew at a mere 5% over three months, a drastic fall from 8% growth rate observed during same period in FY '18-'19.  latest numbers published on Friday highlight that ecomy grew at it's slowest rate in six and a half years. growth rate fell by 0.8% on a quarter-on-quarter basis. 

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Fall in growth of core sectors

growth numbers of various core sectors such as 'Manufacturing', 'Construction', 'Agriculture, Forestry and Fishing' have taken a heavy beating. Manufacturing sector grew at 0.6%, showcasing almost growth and decreasing by 11.5% on a YoY basis. Construction grew at 5.7%, falling from 9.6% on a YoY basis. Agriculture, Forestry and Fishing grew at 2%, as compared to 5.1% on a YoY basis. Wholesale Price Index (WPI) grew by 6.9%, Private Final Expenditure (PFCE) at Current and Constant Prices is estimated to be 57.7% and 55.1% in FY '19-20 as opposed to 58.7% and 56.1% in '18-19.

Reserve Bank of India released its annual report on Thursday saying that it was "difficult to diagse reason or nature for slowdown". It said, " diagsis is difficult, se conditions are hard to disentangle cleanly, at least in formative state”.

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CEA: "Government taking steps to boost ecomy"

Shortly after numbers were released, Chief Ecomic visor K. Subramanian dressed a press conference in which he said that government has been taking proactive steps to fight ecomic slowdown, with measures taken by Finance Minister as well as Cabinet being a reflection of same. CEA n listed or measures taken by government such as reforms related to market access, resolve of government to furr develop bond market. He ded that monetary authorities have also taken necessary steps to improve growth impulse by lowering interest rates.

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CEA Subramanian ded, "se measures t only remove bottlenecks in part of growth but also show quick response of government after extensive discussion with all stakeholders which will continue in future as well". He ded, " underlying robustness of Indian ecomy is borne out by low inflation, focus spending for common man and continuing resolve and momentum on reform path especially structural reforms". He concluded statement by saying that " Government of India remains committed to retaining its glide path to fiscal deficit which is an indication of fiscal and monetary strength."