The Indian economy grew with just 5.3% in the fourth quarter, this is first time GDP data has fallen to 5.3% level after 2003, making a nine year low. Also shocking news after the data release was the RBI is still not expecting rate cuts as inflation still remains important concern.
The services sector is the largest contribution to GDP, it grew at 7.9% against 10.6% last year. Services sector is a very important indicator to as it directly shows that our economy was slowing down. Also the manufacturing sector registered slow growth of 0.3% in Q4 against 7.6% last year for same period. The construction sector grew at 4.8% against 8% last time; The farming sector saw growth of 1.7% against 7.5% year on year basis, here also slow down. The mining sector was only sector that saw growth, which was at 4.3% compared to 0.6% (YoY Basis).
If this goes on then definitely fiscal deficit will widen and harm our economic strength and growth.