Daily O

Indian Economy: Stories of a structural slowdown are farce. Data shows Modinomics is propelling India towards strong growth

Key corporates in the cement, two-wheeler, home loans and consumer goods space are clocking in healthy double-digit growth. Sectors facing a temporary slowdown are hit by global or seasonal factors only.

The Indian economy advanced 5.8% year-on-year in the fourth quarter of financial year 2018-19, slowing from a 6.6% expansion in the previous quarter.

Slower growth rates were seen in household spending (8.1% compared to 8.4% in Q3) and gross fixed capital formation (10% compared to 10.6%). Meanwhile, government consumption (9.2% compared to 6.5%) and inventories (4.8% compared to 3.9%) increased further. Net external trade contributed negatively to the Gross Domestic Product, as exports went up 12.5% (vs 14.6% in Q4) and imports rose at a faster 15.4% (vs 14.7% in Q3).

Household spending accounted for 56.8% of the GDP (58.9% in Q3); gross fixed capital formation for 30.7% (33. 4% in Q3); public expenditure for 9.9% (9.7% in Q3); and changes in stocks for 1.1%, the same as in the third quarter of 2018-19. Exports accounted for 20% (21.8% in Q3) while imports subtracted 23. 3% (-25.7% in Q3).

Gross Value Added (GVA), excluding taxes grew 5.7% in the fourth quarter of 2019, easing from a 6.3% expansion in the prior quarter. A slowdown was recorded in manufacturing (3.1% compared to 6.4%

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