"I don't think the growth has bottomed out, the growth figures may continue to decline the next quarter too, however, post fourth quarter may show some recovery owing to the base effect", Sen said.
The expansion in Asia's third-largest economy fell from 5.0 percent in April-June and marked the sixth consecutive quarterly contraction.
Economists polled by Reuters had expected growth to slow to 4.7% for July-September from a year earlier, compared with a 5.0% rise the previous quarter.
"The demand slump in the automotive sector, weakness in construction sector and lower growth in electricity sector partly brought about by excess rainfall in September have clearly impacted the economic momentum in Q2", Suman Chowdhury, President - Ratings at Acuité Ratings and Research said.
Industrial growth was at 0.5 percent in Q2FY20 as against 6.7 percent in same period previous year and service sector growth came in at 6.8 percent during the quarter, lower compared to 7.3 percent YoY.
"If you are looking at the economy with a discerning view, you see that growth may have come down, but it's not a recession yet and it won't be a recession ever", Finance Minister Nirmala Sitharaman said in Parliament on Wednesday, as the opposition flayed the government for the slowdown.
Nikhil Gupta, Chief Economist at MOFSL, looks more pessimistic among other analysts, as he expects Q3FY20 growth to weaken further to around 4 percent which will mark the trough. Meanwhile, in September inspite of the many economic boosts, the farm sector grew 2.1% in the second quarter of 2019-20, due to the delayed arrival of monsoon.
The major factor in the GDP fall was manufacturing contracting by 1 per cent.
According to NSO data, the growth rate of agriculture sector in the July-September quarter of FY 2019-20 has been 2.1 percent. All these sectors are counted in the employment generating sectors. "Aspiration of our country is to grow at 8-9 percent per annum", he said. Similarly, trade, hotel, transport, communication and services related to broadcasting growth were also down to 4.8 per cent in the second quarter from 6.9 per cent a year ago. The growth rate of financial services has also fallen during this period and it has been 5.8 percent in the second quarter of the current financial year as compared to seven percent. But the growth rate of public service, defense and other services has increased from 8.6 percent to 11.6 percent in the second quarter of past year. He said that more surprising and concerning is the formation of cross fixed capital investment slump to 0.9 percent. The RBI has so far this year reduced rates by 1.35 percentage points to 5.15%. "Sector-specific measures and increased government spending could be the quickest way to boost growth in the near term". Significantly, the domestic and worldwide agencies had lowered their estimates regarding the slow pace of the economy. The Reserve Bank has also lowered its earlier estimate of GDP to 6.9 percent for the financial year 2019-20 to 6.1 percent.