Economic Growth Declines to 5.5 Pc in April-June

Friday, 31 August 2012, 08:39 Hrs
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Bangalore: Showing persistent sluggishness, economy grew by 5.5 percent in the April-June quarter this fiscal due to poor performance of manufacturing, mining and farm sectors.

The gross domestic product (GDP) had expanded by 8 percent in the April-June quarter of 2011-12.

During the quarter ended June 30, the manufacturing sector grew marginally by 0.2 percent, against 7.3 percent growth in the same period of 2011-12, according to the official data released.

Mining and quarrying sector recorded a growth of 0.1 percent during the quarter under review, as against a contraction of 0.2 percent in Q1 of 2011-12.

Farm production expanded by 2.9 percent in the first quarter against 3.7 percent in the same period last year.

The trade, hotels, transport and communications segment also witnessed lower pace of growth at 4 percent compared to 13.8 percent expansion in the same quarter year-ago period.

The growth rate of electricity, gas and water supply also dipped to 6.3 percent in Q1, from 8 percent in the corresponding period last fiscal.

However, the growth in the construction sector was robust at 10.9 percent during Q1 of 2012-13, as against 3.5 percent in the year-ago period.

Growth rate of services sector, including insurance and real estate, also improved to 10.8 percent in the first quarter, from 9.4 percent recorded in April-June quarter last fiscal.

Economic growth in the January-March quarter was at nine-year low of 5.3 percent, as the provisional estimate released earlier.
Source: PTI
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