However, if the trend continues it is likely that things may get worse, before they get better. The previous low was 4.3 per cent during January-March 2012-13.
- DK Joshi, chief economist at Crisil, said GDP growth in the second quarter is likely to be lower than in the first quarter. Electricity consumption growth slumped to 1.5 per cent in April-October this year against 6.8 percent last year. Rates are now at a nine-year low.
Construction sector GVA growth too slowed to 3.3 per cent from 8.5 per cent earlier.
Earlier in the day, RBI Governor Shaktikanta Das held discussions with Finance Minister Nirmala Sitharaman over the upcoming credit policy which is due next week.
Former prime minister Manmohan Singh, on Friday, pointed out that with the clear majority in Lok Sabha and low crude oil prices, Prime Minister Narendra Modi had the "once in a generation" opportunity to catapult India onto the next level of growth, and urged Modi to set aside deep-rooted distrust and take India on a high growth trajectory.
Amid the continued economic slowdown, many feel the Reserve Bank of India, the country's central bank, may go for another interest rate cut of 25 basis points next week.
But Krishnamurthy Subramanian, the government's chief economic adviser, remained unfazed by the blizzard of weak data.
The Indian economy is not showing signs of bottoming out. Apart from this, the Society of Indian Automobile Manufacturers (SIAM) data stated that sale of vehicles declined 23.7% during July-September.
The release of another dataset deepened the gloom.
"Low investment confidence is clearly reflected in a contraction in fixed investment spending during the second quarter".
However, the possible rate cut "is unlikely to lead to any immediate material revival, rather it might result in potential financial instability", the SBI cautioned in a recent report.
In his address to university students, Mishra said game-changers such as the smart phone revolution, artificial intelligence, big data analytics, augmented reality, 3D printing, robotics and block chain technology, are fundamentally transforming our world and the way we engage in it. Hence, fiscal policy will have to do the heavy-lifting to boost growth. Over the past few months, a series of steps have been taken or announced-corporate tax rate cuts, bank consolidation, unified labour codes, clearance of strategic sales of public sector undertakings. The repo rate has fallen 135 basis points so far this year but banks, saddled with about USA $ 140 billion in stressed assets, have not cut their lending rates much.
"A rate cut is nearly certain next week and will be followed by another one in February", Mark Williams, chief Asia economist at Capital Economics, said in a report. Unless we are able to keep abreast of the changes, learn new things and compete with others, we will fall behind.
With declining household savings and lower buoyancy in government's revenue collections, there will be limited fiscal space to spur economic growth. But why is the BJP celebrating?