India’s third quarter growth slowed to 4.7%, the slowest pace in about seven years, as a malaise in production weighed on the overall economic momentum.
However, the Center claimed that the delay had broken out, with Economic Minister Atanu Chakraborty quoting a recent increase in the output of the core sector as a sign of things to come.
On Friday, the National Statistical Office released data to prove that Gross national product expanded by 4.7% in the quarter ending December 2019, compared to 5.6% in the same period a year earlier.
“We have already reached the low point,” Chakraborty told journalists after the data was released. “Continuous improvement of agriculture and services continue to stimulate growth. The change in growth in the index of the eight core sectors in December 2019 and January 2020, it also predicts good for the processing sector, ”he added. These core industries showed 2.2% growth in January, according to data released by the Ministry of Commerce on Friday.
Asked about the possible consequences that the coronavirus outbreak in China, which now threatens to hit more and more countries, could have on the Indian economy, he said it was a “story” and refused to speculate about the likely impact.
The NSO also published the second advance estimates, in which GDP growth of 5% is expected for 2019-2020, compared to 6.1% in 2018-19. The projection remains unchanged from last month.
However, the NSO has been revised upward estimates of GDP growth for the first two quarters of the current financial year: growth in the first quarter of 2019-20 was linked to 5.6%, higher than its earlier estimate of 5%. It also raised the estimate for the second quarter to 5.1%, from 4.5%.
According to senior officials from the Ministry of Finance, the government’s increased spending, especially on infrastructure, has contributed to a modest economic recovery. They also saw positive signals in foreign direct investment, mining and agriculture and claimed an improvement in rural demand in rural areas.
The impact of corporate tax reduction on investments could not be assessed at this time, a senior official said that it was a “long-term, structural, structural” change that could shed years.