GDP Growth Slows to 7.1% in July-September, Down from 8.2% in Previous Quarter

New Delhi: The Indian economy grew 7.1 percent in July-September, down from 8.2 percent in the previous quarter. This was the lowest GDP growth in three quarters and the dip can be attributed to high fuel prices and a sliding rupee among other factors.

India still remained ahead of China to retain the tag of the world's fastest growing major economy. India's $2.6 trillion economy, Asia's third largest, grew 6.3 percent in the July-September quarter of 2017, according to government data released on Friday.

The Gross Domestic Product (GDP) at constant prices (2011-12) had grown at 6.3 per cent in July-September quarter of the last fiscal, according to government data released Friday.

The size of the GDP in the second quarter of 2018-19 is estimated at Rs 33.98 lakh crore, as against Rs 31.72 lakh crore a year ago, showing a growth rate of 7.1 per cent, as per a statement of the Central Statistics Office (CSO).

Indian economy grew at 8.2 per cent in April-June quarter of this fiscal. The GDP growth was 7.7 per per cent in January-March quarter while it was at 7 per cent in October-December.

The Chinese economy had expanded at the rate of 6.5 per cent in the July-September period this year.

India's GVA (gross value added) at Constant (2011-2012) Prices for second quarter this fiscal is estimated at Rs 31.40 lakh crore, as against Rs 29.38 lakh crore year ago, showing a growth rate of 6.9 percent over the corresponding quarter of previous year.

The CSO said that mining and quarrying output has declined by 2.4 per cent in the quarter from a growth of 6.9 per cent in year ago period. However, the manufacturing activities expanded at the rate of 7.4 per cent in the quarter under review up from 7.1 per cent in the year ago quarter.

The construction sector too showed an improvement by recording a growth of 7.8 per cent as against 3.1 per cent earlier.The farm sector too grew at a higher rate of 3.8 per cent in the quarter as against 2.6 per cent a year ago

Meanwhile, the April-October fiscal deficit stood at Rs 6.49 trillion ($93.23 billion), or 103.9 percent of the budgeted target for current fiscal year, government data showed on Friday.

Net tax receipts in the first seven months of the fiscal year that ends in March 2019 were 6.61 trillion rupees, government data showed.

The government has said it was confident of meeting its fiscal deficit target of 3.3 percent of GDP in the 2018/19 fiscal year.