- Manufacturing Slowdown: There is a dramatic slowdown in the manufacturing sector. The data show that the manufacturing sector grew at an anaemic two-year low of 0.6% in the first quarter of 2019-20, down from 12.1% in the same quarter of the previous year.
- Exogenous factors: The impact comes, especially, from global headwinds due to the deceleration in developed economies, the Sino-American trade conflict, etc.
- Farm crisis: The agriculture sector also saw a dramatic slowdown in growth to 2% from 5.1% over the same period.
- Real estate in dumps: The plight of the real estate sector was also highlighted by the slowdown in its growth rate to 5.7% in the first quarter of this financial year, compared with 9.6% in the same quarter of 2018-19.
- Demand collapse: The growth slowdown was led by private final consumption expenditure, which grew 3.1% only (18 quarter low). Investment demand also remained lacklustre and fixed capital formation grew 4%.
An initiative by Avinash Agarwal to provide comprehensive and accurate information, resources, and support for individuals preparing for the UPSC Civil Services Examination.
Saturday, August 31
5 Reasons Why India's Growth Collapsed
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