India's economic growth slows in Q3

Tuesday, 01 April 2003, 20:30 IST
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NEW DELHI: India's economy witnessed slower growth in the third quarter (Q3) of 2002-03 in the wake of the severe and widespread drought in the country. Against a robust growth of 6.3 percent in the October-December quarter in 2001-02, the corresponding quarter during this fiscal recorded only 2.6 percent, according to figures released by the Central Statistical Organisation (CSO) here Monday. India had recorded a healthy 5.8 percent growth in the previous quarter (July-September). The growth in agriculture sector, hit by the worst drought since 1987, fell to 7.9 percent in the October-December quarter. The drop in the agricultural output, estimated to be minus three percent for the whole fiscal, is expected to bring down the overall economic growth to 4.4 percent as against 5.6 percent growth in the previous fiscal. According to the information furnished by the Department of Agriculture and Cooperation (DAC), which provided the input on agriculture, the production of rice has declined by 15 percent, coarse cereals 29.9 percent, pulses 18.1 percent and oilseeds 34.4 percent during the kharif (summer) season of 2002-03. Production of cotton is also expected to decline by 11.4 percent and sugarcane by 4.9 percent in 2002-03 over the estimates of the previous year. The sectors that registered a significant growth in Q3 of 2002-03 over the corresponding quarter in the previous year includes manufacturing at 6.3 percent, 'electricity, gas and water supply' at 5.9 percent, construction at 7 percent, 'trade, hotels, transport and communication' at 7.5 percent, 'financing, insurance, real estate and business services' at 8.1 percent, and 'community, social and personal services' at 5.5 percent. The strong growth in these sectors has however not been able to wipe out the severe impact of a 7.9 percent drop in agriculture sector during Q3.
Source: IANS
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