Former Finance Secy S Narayan Explains Reason Behind India's GDP growth at 5%

Severe slowdown in manufacturing activity in the country pulled India's GDP growth rate in first quarter (Q1) ended June down to 5 per cent, marking the fourth successive quarter of decline in growth on the trot.

From 8 per cent during Q1 of 2018-19 to 5 per cent in this quarter, the GDP has fallen by three per cent in barely a year.

On a sequential basis, the growth rate came lower than the 5.8 per cent in Q4 of 2018-19.

The GDP growth figures came on the day when the government went on overdrive to prop-up growth by announcing a mega merger of public sector banks (PSBs). Finance Minister Nirmala Sitharaman has been announcing a slew of growth-inducing measures in the recent days.