GDP at 4.5% stays lowest in last six years
New Delhi : The Indian economy has refused to revive itself as it remained at 4.5% in the September quarter, lowest since March 2013, according to the data released on Friday.
The fall in the GDP growth rate from 5% in the previous quarter is likely to put extra pressure on the fiscal stimulus. The persistent slowdown may also force the Reserve Bank of India to go in for another round of interest rate cuts at its monetary policy review meeting on 5 December.
Talking about China's economic slowdown, they had come down to 6% from the earlier 6.2%, it is their weakest quarterly growth since 1992.
Data released by the department for promotion of industry and internal trade, ministry of commerce and industry, showed that the core sector, which comprises eight infrastructure industries, contracted by 5.8% in October, the second consecutive month of contraction, signalling the worst may not be over for the manufacturing sector.
In September, the core sector had shrunk by 5.1%.
Former Prime Minister Manmohan Singh criticized the data and said a growth rate of 4.5% is "unacceptable".
“Aspiration of our country is to grow at 8-9%. Sharp decline of GDP from 5% in Q1 to 4.5% in Q2 is worrisome. Mere changes in economic policies will not help revive the economy," Manmohan Singh added.