The slowdown in Q2 FY20 was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.
Industrial output in September contracted by 4.3 per cent from a year earlier due to poor performance in the manufacturing sector, data released by the government on Monday showed.
It said that to rejuvenate growth, policymakers must undo the trade barriers put in place with durable agreements, rein in geopolitical tensions and reduce domestic policy uncertainty.
The steep fall in GDP was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.
"Investment first affects productivity and later affects exports and consumption. So it is important for us to focus on investment. In economy, there are multiple variables and investment is the key driver. That is something the government continues to focus on," he said.
Finance Minister Nirmala Sitharaman on Friday made several announcements to boost Indian economy in bid to give a fillip to the strained economy.
9.6 crore toilets have been constructed since October 2, 2014. More than 5.6 lakh villages have become open defecation free. We have to build on this success. I propose to expand the Swachh Bharat mission to undertake sustainable solid waste management in every village
Global FDI flow slipped by 13 per cent in 2018 to USD 1.3 trillion, from 1.5 in the previous year. However, India's FDI flows in 2018-19 remained strong at USD 54.2 billion, six per cent higher than last year
India is currently the fastest-growing large economy in the world and it “recently became the sixth-largest economy in the world”, PM Modi said during the inaugural address of Petrotech 2019 in Greater Noida.
The government on Thursday revised the GDP growth rate to 7.2% from the 6.7 per cent. The growth figure is for 2017-18.