The Indian economy grew by 4.8 percent in 2019.

India's economy grew by 4.2% in FY 2019-20, according to the data released by the National Statistical Office (NSO).

The growth of 4.2% was an eleven-year low for the country's economy. In the final quarter of the year, January-March, the growth rate of Gross Domestic Product (GDP) fell to 3.1%, reflecting the impact of the first week of the COVID-19 lockdown, which began on March 25, reported The Hindu. This is the country’s lowest growth rate in the last 44 quarters; however, most economists and rating analysts are still predicting higher than the 2.2% growth.

‘Agriculture and government expenditure have been the saviors,’ said Devendra Pant, chief economist at the Fitch Group’s India Ratings to The Hindu. Agriculture and mining sectors picked up steam in the fourth quarter, growing at rates of 5.9% and 5.2% respectively, even while the manufacturing sector contracted further, recording a negative growth of 1.4%. Public administration, defense, and other services grew at 10.1%.

Although the budget estimate for GDP growth in 2019-2020 had been pegged at 8.5%, the NSO’s previous estimates had pushed the projection down to 5%.

Reference links

Indian Budget

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Press Information Bureau

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Ministry of Finance Department of Economic Affairs

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