NEW DELHI — Indian economic growth slumped to a six-year low of 5 percent in the April-June quarter because of a sharp deceleration in manufacturing output and subdued activity in farming and construction, a government report showed Aug. 30.
Chief Economic Adviser K.V. Subramanian also attributed the slowdown to global trade tensions. The Ministry of Statistics and Program Implementation released the data.
The sale of new cars has also dipped 20 percent, raising fears of a deep slowdown.
Subramanian said the government is taking various steps to boost economic expansion.
India’s central bank said reviving consumption and private investment would require greater spending on infrastructure and structural changes, including labor law, taxation and legal reforms.
India’s GDP growth averaged 7.7 percent from 2014 to 2018. The economy began losing momentum after expanding 8 percent in the April-June quarter last year.
The previous low GDP growth was 4.3 percent in the January-March quarter in 2013.
Finance Minister Nirmala Sitharaman announced the merger of 10 state-run banks into four and promised a recapitalization of funds to improve lending to businesses.
The government announced a liberalization of foreign direct investment in domestic manufacturing, coal mining and digital media to infuse capital into the economy.