Indian economy finally had a breather as GDP growth showed a slight uptick in December quarter, after falling for six quarters in a row. India's Gross Domestic Product (GDP) grew at 4.7 per cent in quarter ended December 31, 2019, showed data released by National Statistical Office on Friday.
"GDP at Constant (2011-12) prices in Q3 of 2019-20 is estimated at Rs 36.65 lakh crore, as against Rs 35 lakh crore in Q3 of 2018-19, showing a growth of 4.7 per cent," Ministry of Statistics and Programme Implementation said in a statement.
Economic growth has been falling since March quarter of FY18 when it was pegged at 8.13 per cent. Last quarter, GDP growth rate reached 4.5 per cent, the lowest in six and a half years, due to subdued expansion in agriculture, manufacturing, and government expenditure. India's economic growth had plunged 2.2 per cent in FY19 alone - from 8 per cent in the first quarter to 5.8 per cent in the last.
Analysts were expecting Indian economy to start on the path to recovery in December quarter, owing to rise in rural demand, government spending in welfare schemes and private consumption.
Although signs are good, Indian economy is not out of the woods yet. GDP growth has to increase a great deal if India is to realise its dream of becoming a $5 trillion economy by 2024.
Moreover, economists believe Indian economy will remain under strain due to the coronavirus outbreak in China, which has crippled the global supply chain. The crisis is expected to have a major impact on several Indian industries, including pharmaceuticals, electronics, consumer durables, automobile, among others.