Slowdown dents growth, Q2 GDP growth falls to 4.5 pc

Slowdown in manufacturing activity pulled India's GDP growth rate in second quarter (Q2) ended September down to 4.5 per cent, marking the fifth successive quarter of decline.

Contraction in India's eight major industries continued for the third consecutive month in October as the output pace receded by (-)5.8 per cent.

According to the Index of Eight Core Industries, October's contraction was in line with the sharp plunge of 5.1 per cent registered in September.

The contrast in output pace was even more evident on a year-on-year basis, when the growth rate stood at 4.8 per cent in October 2018.

The eight core industries include coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity.

According to the Index of Eight Core Industries, barring refinery products, all the other seven sectors contracted in October.

The core sectors comprise 40.27 per cent of the weight of items included in the Index of Industrial Production (IIP).

Prime Minister Narendra Modi’s government has taken several steps to boost investment and bolster economic growth, including cutting corporate taxes in September, while the central bank has cut interest rate five times this year. But some surveys show business confidence is at multi-year lows.

(With inputs from Reuters)