GDP growth expected to print sub-6.5% in FY20: ICRA's Aditi Nayar

Government spending was the key driver of GDP growth in Q1 FY20. The outlook for the same appears somewhat mixed

The pace of growth of GDP and GVA in Q1 FY20 recorded a surprisingly sharp slowdown to 5 per cent and 4.9 per cent, respectively, from 5.8 per cent and 5.7 per cent, respectively in Q4 FY19. The main culprit was the manufacturing sector, which saw a collapse in growth to 0.6 per cent in Q1 FY20 from the low 3.1 per cent in Q4 FY19. Accordingly, while the headline GVA growth slowed to 4.9 per cent in Q1 FY20 from 5.7 per cent in Q4 FY19, the expansion of GVA ex-manufacturing recorded a narrower dip to 5.9 per cent