India’s gross domestic product (GDP) grew 4.7 percent in October-December, according to estimates by economists, official data on Friday shows. The estimates of the National Statistical Office on GDP growth in the country come days after Finance Minister Nirmala Sitharaman said “green shoots” are evident in the economy, and at a time when the government pegged a 5 percent overall GDP growth in the financial year ending March-the worst rate of annual expansion since the 2008-09 global financial crisis.
The GDP growth rate in the quarter of December matched analysts ‘ estimates in a poll conducted by Reuters news agency but was below a revised growth rate of 5.1 percent for the previous quarter.
Commenting on the latest GDP numbers, the Secretary of Economic Affairs said the economy has bottomed out.
According to the statistics ministry announcement, the figure for the July-September period has been revised to 5.1 percent from 4.5 percent. In addition, the forecast for GDP growth in the first quarter of 2019-20 (April-June) has been updated from 5 percent to 5.6 percent.
Earlier this month, Prime Minister Narendra Modi’s government took several steps to improve economic growth, including increasing government spending on infrastructure, but many economists expect the effects of these initiatives to be outweighed by the global impact of China’s coronavirus outbreak.
The Finance Minister has maintained that the economic fundamentals remain strong and that she does not close the door to further measures to help it. The Budget has laid the foundation for driving consumption and building infrastructure to achieve the goal of the government to make India a $5 trillion economy, she said this month.
India lost its place last year as the world’s fastest-growing major economy. The government has set a target of turning the country into a $5 trillion economy by 2024.