Saturday 29 February 2020

Second Advance Estimates of National Income, 2019-20 and Quarterly Estimates of Gross Domestic Product for the Third Quarter (Oct-Dec), 2019-20

Second Advance Estimates of National Income, 2019-20 and Quarterly Estimates of Gross Domestic Product for the Third Quarter (Oct-Dec), 2019-20

  • India’s third­quarter growth decelerated to 4.7%, the slowest pace in about seven years, as a slump in manufacturing weighed on overall economic momentum. 
  • The National Statistical Office (NSO) released data showing that the Gross Domestic Product expanded by 4.7% in the quarter ended in December 2019, compared with 5.6% in the year­-earlier period. 
  • Sustained improvement in agriculture and services continue to drive growth. The turnaround in growth in the eight core sector industries index in December 2019 and January 2020 also augurs well for the manufacturing sector
  • The NSO also released the second advance estimates, projecting a GDP growth of 5% for 2019­20, in comparison with 6.1% in 2018­19. The projection remains unchanged from last month.
  • However, the NSO revised upward its GDP growth estimates for the first two quarters of the current fiscal year: growth in the first quarter of 2019­20 was pegged at 5.6%, higher than its earlier estimate of 5%. For the second quarter too, it increased the estimate to 5.1%, from 4.5%.
  • According to senior Finance Ministry officials, the government’s increased spending, especially on infrastructure, had helped spur a modest economic recovery. They also saw positive signs in foreign direct investment, mining, and agriculture, and claimed an improvement in demand in rural areas.
Source: The Hindu

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