Page 26 - Banking Finance November 2019

ARTICLE

Sector wise GDP growth trend is as under- Nino could potentially leave farmers with a hole in their
incomes.

Private final consumption expenditure
in the year rose 8.1% and capital
investment as measured by gross fixed
capital formation expanded 10% from
9.3% in the previous fiscal.

Investment in terms of GDP has
declined from 32.2% to 29.8%.

Export in terms of GDP has also
declined from 11% to 9% for the year
2018-19. India's per-capita income
As per the data, the economic activities which registered increased 10% to Rs 10,534 per month in 2018-19 from Rs
growth of over 7 percent on a YoY basis in 2018-19 were 9,580 in FY19. The per-capita income is an indicator of the
'public administration, defence and other services', prosperity of a country.
'construction', 'financial, real estate and professional
services', 'electricity, gas, water supply and other utility India's industrial production fell 0.1 percent from a year
services'. earlier in March 2019, the first month of contraction since
June 2013. Manufacturing production shrank 0.4 percent,
"The growth in the 'agriculture, forestry and fishing', 'mining the same pace as in the previous month, while mining
and quarrying', 'manufacturing' and 'trade, hotels, output rose at a softer pace (0.8 percent vs 2.2 percent).
transport, communication and services related to On the other hand, electricity output growth accelerated
broadcasting' is estimated to be 2.9 per cent, 1.3 per cent, to 2.2 percent from 1.3 percent. Industrial production for
6.9 per cent and 6.9 per cent, respectively," the CSO said. 2018/19 grew at 3.6 percent, slower than 4.4 percent in the
The growth in Manufacturing, Construction and financial previous fiscal year.
real estate sector has been more compared to previous year.
Whereas in other sectors growth is declined. A Mint analysis showed that slower sales have dragged
profits of companies that reported earnings for the quarter
The scenario of agriculture sector too does not look very ended March 31 to the slowest in at least 13 quarters.
bright. Elaborating further on the CSO data, chief economist
ICICI securities Prasanna says , Weak rural activity indicators Aggregate net profit growth of 334 BSE-listed companies
have also been impeding growth recovery as captured in low that reported March quarter earnings (till May 7) fell 1.5
rural wages, slowdown in credit to medium scale industries
and nascent recovery in two-wheeler and commercial
vehicle sales.

Acreage for the rabi crop was lower than last year, which
has impinged on the agricultural performance." He expects
consumption impulses to remain muted in the upcoming
print and recovery in the same will "depend on the
monsoons and the efficacy of the income schemes for the
rural population." Monsoons have remained more or less
erratic in the past five years and water scarcity has been
amply reported from states of Maharashtra, Tamil Nadu and
other parts of the country. The factor of a developing El-

26 | 2019 | NOVEMBER | BANKING FINANCE