India’s GDP grew at 5.8% in the January-March 2019 quarter, dragging down the full year growth to a five-year low of 6.8%. India has lost fastest growing tag to China, if quartery growth rates are compared. The unemployment rate in the country rose to a 45-year high of 6.1% in 2017-18, as per official data.
Reason for slowdowm
Slowdown, caused by temporary factors such as liquidity crunch, is likely to continue in the April-June 2019 quarter, with the demand picking up from the second quarter onwards. The slowdown is on loan stress in NBFC sector.
Performance of various sectors
During the year, the slowdown in the economy was led by sluggish growth in the agriculture, forestry and fishing sector (2.9% growth), the mining sector (1.3% growth) and manufacturing (6.9%).
The sectors which saw growth rate of over 7% were public administration, defence and other services, construction, financial, real estate and professional services, and electricity, gas, water supply and other utility services.
Unemployment at 45year high
The unemployment data, which was released a day after Prime Narendra Modi took oath for the second term, confirms an earlier leaked version of this survey that claimed that joblessness was at a 45-year high.
The data showed that 7.8% of the employable urban youth and 5.3% of employable rural youth was without jobs. Additionally, 6.2% male and 5.7% females across the country were jobless.
Further, as per the data, unemployment rate for males was higher in rural areas at 5.8% as against 3.8% for women, while in urban areas the rate for women was 10.8 against 7.1% for men.