GDP growth slides to 3.1 pc, core sectors' output shrinks

New Delhi, May 29

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The country’s economic growth in the fourth quarter of 2019-20 slowed to 3.1 per cent as against a rise of 5.7 per cent in the same period last year. The output in eight core sectors is estimated to have contracted 38.1 per cent in April, suggesting much bleaker days ahead.

Telling comment

We had forecast that the GDP for Q4 would slip below 4%. It has turned out to be worse. The govt should remember that this data was pre-lockdown. — P Chidambaram, Congress

The growth during the full 2019-20 financial year was slow too.The GDP grew by 4.2 per cent as compared to 6.1 per cent in 2018-19 — the slowest in 11 years. The slide in the GDP growth during the January-March quarter, a partially Covid-impacted period, was due to a crash in most core sector indicators, except coal, according to the National Statistical Office. The drop was especially precipitated by a fall in cement production (- 4.9 per cent), steel (-3.9 per cent) and crude oil (- 5.7 per cent). The NSO said India would attain a per capita income of “Rs 94,954 during 2019-20 as against Rs 92,085 in 2018-19.” — TNS

GST Council meet

The Finance Ministry is not in favour of increasing GST rates on non-essential items at next month’s meeting of GST Council, despite depressed collections.