The Central Statistic Office on Friday, 31 May, said India's economic growth for the full year 2018-19 stood at a 5-year low of 6.8 percent.
The governmental statistical agency also added that Gross Domestic Product (GDP) for the fourth quarter of 2018-19 fiscal year (January-March), fell to 5.8 percent against 6.6 percent in the third quarter.
According to Reuters, India's Q4 GDP has fallen below China's, which stood at 6.4 percent in the March quarter, thus losing its spot as the fastest growing economy.
Reacting to the slow down, Economic Affairs Secretary SC Garg told PTI that the fall in Q4 GDP was due to temporary factors like "stress in NBFC sector."
Garg also said that economic growth is likely to pick up in the second quarter of the current fiscal year.
India's GDP Growth Forecast at 7.1% for FY20
On 30 May, the country's median GDP was forecast at 7.1 percent for FY 2020 and 7.2 percent for FY 2021, according to a survey.
The industry body FICCI's economic outlook survey said the minimum and maximum growth estimate stood at 6.8 percent and 7.3 percent, respectively, for 2019-20.
Fiscal Deficit Lower at 3.39% in 2018-19
Meanwhile, the fiscal deficit for 2018-19 was at 3.39 percent of GDP, marginally lower than 3.4 percent estimated in the revised estimates of the Budget, mainly due to increase in non-tax revenue and lower expenditure.
In absolute terms, fiscal deficit at the end of 31 March, stood at Rs 6.45 lakh crore as against Rs 6.34 lakh crore in the revised estimates of Budget.
Moments after the data was released by the Central Statistic Office, Congress leader Randeep Surjewala reacted saying “slump in economic growth and runaway unemployment are two important challenges before the country.”
“Hope PM & FM will address them by laying a short-medium-long term roadmap of kick starting the growth engine as also employment generating strategy,” he added in a tweet.
(With inputs from PTI, Reuters)
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