New Delhi, Nov. 30- In the second quarter of the current financial year, from July to September, the country’s economic growth has slowed to 5.40 percent.
While the Reserve Bank had predicted that the country’s growth would be 7 percent in this quarter, the official data released by the National Statistics Office yesterday showed a decline of 1.60 percent. In particular, the slowdown in the manufacturing and mining sectors is said to be the reason for the decline in GDP.
Compared to the 8.1 percent growth in the September quarter of the last financial year, there has been a decline of 2.70 percent.
This is the biggest quarterly growth decline after the 4.60 percent growth in the October-December quarter of 2022.
The manufacturing sector growth, which was 14.30 percent in the same period of the last financial year, has now slowed to 2.20 percent; The main reason for the decline in GDP was the slowdown in mining sector growth, which fell to 0.01 percent from 11.10 percent.
Justice deficit
The fiscal deficit, the gap between the government’s revenue and expenditure, reached the government’s full-year estimate of 46.50 percent by the end of October. It was 45 percent in the same period of the previous fiscal year.
Credit growth
Bank credit to industry grew by 8 percent in October, compared to 4.80 percent in October 2023. Personal credit growth slowed to 15.80 percent from 18 percent.
However, in the September quarter, India retained its position as the world’s fastest growing economy with a growth of 5.40 percent, while China’s economy grew by 4.60 percent.