The Indian economy is estimated to grow at 5 percent in 2019-20 as against 6.8 percent in the previous fiscal, according to Central Statistics Office (CSO) released on Tuesday, 7 January.
The decline has been mainly on account of deceleration in manufacturing sector growth, which is expected to come down to 2 percent in 2019-20 from 6.2 percent in the year-ago fiscal, as per the first advanced estimates released on Tuesday.
The deceleration was also witnessed in sectors like agriculture, construction and electricity, gas and water supply. Whereas, some sector, including mining, public administration, and defence, showed minor improvement.
The prediction has come at a time when BJP-led administration is preparing for the union budget for the financial year 2021 that will be presented in Parliament in weeks.
The forecast is likely to reassure Modi’s cabinet that the steps already taken to boost consumption and private investment may be beginning to show results.
Earlier, India's GDP slumped to over six-year low of 5 percent in the April -June quarter and 4.5 percent in the July - September quarter of 2019.
(With inputs from PTI)