GDP growth at 4-year low: key takeaways

India's economy grew at 4.4 per cent in the April-June quarter, the slowest quarterly rate since the global financial crisis. This was also the third consecutive quarter of below 5 per cent growth, building more pressure on the government to take immediate action to resuscitate it. The Indian economy grew at 5.4 per cent in the same quarter last year.

1. GDP or gross domestic product for the first quarter came in below estimates of 4.6 per cent. During the previous quarter, the country's economy grew at 4.8 per cent.
2. Agricultural sector output was however better that estimates at 2.7 per cent against 1.4 per cent during the January-March quarter
3. Industry output during the April-June quarter was worse than estimates, up 0.2 per cent. Industry output in the previous quarter grew 2.7 per cent
4. Manufacturing sector showed a de-growth of -1.2 per cent, showing a sharp drop in manufacturing activity
5. Trade, hotels, transport segment, a key indicator of services sector, posted the biggest drop in growth to 3.9 per cent from 6.2 per cent
6. Private final consumption expenditure growth which reflects consumer demand slowed down to 1.6 per cent during the first quarter
7. Gross fixed capital formation dropped 1.2 per cent in the first quarter, a reflection of investment activity slowing down
8. There was no pick up in exports during the quarter, data showed a de-growth of -1.2 per cent
9. Government spending on community, social & personal services went up sharply during the quarter to 9.4 per cent from 4 per cent a quarter ago
   
   
   Going forward government finances are likely to get stretched
   Source: NDTV Profit