India's economy had annual growth of 5.0 per cent in the April-June quarter, the slowest in more than six years, dragged down by weak consumer demand and private investments, government data showed on Friday.
A Reuters poll of economists had forecast annual growth of 5.7 per cent for April-June, compared with a 5.8 per cent rise the previous quarter. For April-June 2018, India reported 8 per cent growth.
Rupa Rege Nitsure, group chief economist, L&T Financial Holdings, Mumbai
"National accounts data is consistent with the picture suggested by leading indicators for Q1, FY20. GDP growth has decelerated to 5 per cent - the lowest since Q4, FY13."
"There is an acute slowdown in the manufacturing and agri sectors on the back of a slowdown in aggregate demand - both consumption and investment demand.
"Except for mining activity and power generation, all other productive sectors have slowed on a y-o-y basis. In our opinion, the weight of structural factors has gone up in the slowdown and mere monetary stimulus may not work beyond a limit."
Gourav Kumar, principal research analyst at Fundsindia.Com, Chennai
"Given the indications we have seen in the past few months, growth was expected to be slow. However, 5 per cent is far below street estimates of 5.6-5.7 per cent and does come as a surprise. This was primarily driven by lower growth in private consumption."
"Manufacturing growth staying almost flat is also worrying and immediate steps are needed to revitalise this sector. An overall recovery may take another couple of quarters as the NBFC sector is still recovering from the liquidity crisis."