India’s Gross Domestic Product (GDP) growth slipped to a 26-quarter low of 4.5% in the second quarter (Q2 i.e. July-September) of the financial year 2019-20. The growth is the lowest in six years and three months with the previous low recorded at 4.3% during the January – March 2013. India has lost the tag of the fastest growing economy to China which posted a growth of 6% in the September quarter.
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The low rate of expansion was mainly on account of a weak manufacturing, falling consumer demand and private investment, and a drop in exports due to a global slowdown. The global economy is also facing a slowdown and this has hurt demand for India’s exports, which have slumped in recent months. Broadly in line with economists’ estimates, the Q2 GDP growth rate this year is the lowest quarterly rate since the 4.3 per cent clocked in January-March quarter of 2012-13, the year when the new GDP series had kicked in. At the time, India had been battling high inflation and political turmoil, besides global economic pressures.