India’s economy slowed down more than expected in the fourth quarter last year, slowing to just 7.8%, compared to 8.6% for the year a whole. The fourth quarter growth is below the 8% guidance that most economists have given for the current year.
However, even last year’s full year number of 8.6% growth has been revised downwards to 8.5% as more and more statistics came through.
“The downward revision in the GDP growth rate is mainly on account of lower performance in ‘mining and quarrying’, ‘manufacturing’ and ‘trade, hotels, transport, and communication’ and ‘financing, insurance, real estate & business services’ than anticipated,” the Government said moments ago.
The growth rate in GDP of ‘manufacturing’ sector is now estimated at 8.3 per cent, as against the earlier estimate growth rate of 8.8 per cent. Similarly mining growth was lowered from 6.2% ot 5.8%.
However, agriculture, forestry and fishing growth was increased to 6.6 per cent, against the growth rate of 5.4 per cent in February.
Without accounting for inflation (price rise), the Gross Domestic Product or GDP — showing the total economic activity in the country — grew at 19.1%. The actual growth is arrived at by reducing the effect of rising prices from the value.
Without inflation adjustment, the per capita (per person) income hit Rs 54,835 during the year (Rs 4,569 per month) — a rise of 17.9 per cent. The per-person income growth is lower than for the country as a whole as the number of persons has increased during the year.