GDP growth slows down to 3-year low of 5.7 per cent in Q1

The Indian economy recorded a 5.7 per cent growth for the period April-June period, starkly lower than the previous quarter’s 6.1 per cent growth and the previous year’s 7.9 per cent expansion for the same quarter. The disruptions caused by demonetisation and the roll out of GST is largely attributed to the slow down in the growth in the economy.
 
According to the data released by the Central Statistics Office (CSO) , the country’s real GDP grew at the slowest pace in 13 quarters and is far from reviving to 8 per cent growth, last recorded in 2015-16.
 
The CSO also estimated that the gross value added grew 5.6 per cent in the April-June quarter against 7.6 per cent growth in the same quarter of the previous year.   
 
According to the government, the slowdown in the growth rates could be a one off affair as an outcome of the large scale inventory clearance that happened before the GST roll out.

The gross value added of the economy, which is calculated by subtracting taxes from the GDP, provides a more realistic proxy to measure the changes in the aggregate value of the goods and services produced in the economy.  
Taking a major hit, the manufacturing sector slowed to 1.2 per cent in the April-June quarter from a 10.7 per cent growth in the same quarter in the previous year.