The government estimates that India's GDP growth may come down to 5% in the current financial year. If this happens, it will be a minimum level of 11 years. In the last financial year, the pace of economic growth of the country was 6.8%. The same has been predicted in the First Advanced Estimates of the National Income released by the National Statistical Office (NSO) on Tuesday.
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Most decline in the manufacturing sector
According to the data, the pace of GDP growth has come down due to a decline in the growth of the manufacturing sector. The sector is expected to fall to 2% in the current financial year. The figure stood at 6.2% in the last financial year. Estimates released by the NSO said that sectors like agriculture, construction, electricity, gas and water supply also saw a decline. At the moment, sectors like mining, public administration, and defense have seen little improvement.
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The advance estimate of GDP is very important because the Finance Ministry sets the budget estimate for the next financial year based on the data of NSO. The second advance estimate can be released on 28 February. It will be based on actual figures for all 3 quarters. It will be followed by the Provisional Estimate in May. This will give a better picture about the country's economic situation.
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