Business investment grew by less than 1 per cent, which bodes ill for India’s long-term growth.
According to the data released by the Ministry of Statistics and Programme Implementation (MoSPI), India’s gross domestic product will grow by just 5 per cent in the current financial year (2019-20). Last financial year, 2018-19, the Indian economy grew at 6.8 per cent. The gross value added (GVA), which maps the economic activity from the income side as against the GDP which maps it from the expenditure side, is expected to grow by 4.9 per cent in 2019-20 as against 6.6 per cent in 2018-19.
* What are the First Advance Estimates and what is their significance?
The First Advance Estimates (FAE) released on Tuesday evening extrapolate a variety of data, such as the Index of Industrial Production, the financial performance of listed companies, first advance estimates of crop production etc., for the first 7 to 8 months to arrive at the annual figure. The significance of the FAE is that this is the final bit of official data before the government presents its next Budget.
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