3QFY20 GDP growth - Worrisome
The recently released data of country's economic growth once again highlighted that the current slowdown may not be entirely cyclical and it may have some element of structural weakness in the economy. In particular, the continued weakness in investment activities is worrisome. Also, sharp fall in nominal growth and poor growth in per capita income does not augur well for the midterm growth prospects. The latest PMI and employment data for February indicates that the slowdown continues in the current quarter also. The second advance estimate for FY20 GDP growth is now 5% (vs. 6.1% in FY19). Per capita GDP is now expected to grow at 3.9% in FY20 (vs 5.1% in FY19). In the reporting quarter (3QFY20)— The production of coal (-4.3% yoy), Crude oil (-6.2% yoy), Natural Gas (-6.6%, yoy), and Commercial vehicles (-17.3%, yoy) recorded significant contraction. Overall manufacturing activities contracted 0.3% yoy. The private consumption at 62.4% of GDP in 3QFY2...