India’s GDP growth declines to 5.3% in July-Sept quarter
New Delhi: The Indian economy grew by 5.3 percent in the July-September period of the current financial year (2012-13), pulled down by poor performance of manufacturing and agriculture sectors, showing persistent signs of slowdown.
The gross domestic product (GDP) had expanded by 6.7 percent in the same period of last fiscal.
It had grown by 5.5 percent in the first quarter (April-June) of 2012-13.
During the three-month period ended September 30, the manufacturing sector grew marginally by 0.8 percent, against 2.9 percent growth in the same period of 2011-12, according to data released by the Central Statistical Organisation (CSO) Friday.
Farm sector output expanded by just 1.2 percent in the July-September period this fiscal against 3.1 percent in the same period last year.
Mining and quarrying sector, however, showed some improvement and recorded a growth of 1.9 percent during the quarter, as against a contraction of 5.4 percent in the second quarter of 2011-12.
The economic growth in the first six month of this fiscal (April-September) is 5.4 percent, lower than 7.3 percent growth clocked in the year-ago period.
In the July-September quarter, trade, hotels, transport and communications segment also witnessed lower pace of growth at 5.5 percent compared to 9.5 percent expansion in the same quarter in year ago.
The growth rate of electricity, gas and water supply also dipped to 3.4 percent in the second quarter, from 9.8 percent witnessed in the same quarter of 2011-12.
Construction sector expanded by 6.7 percent Q2 of 2012-13, as against 6.3 percent in the year-ago period.
Growth rate of services sector, including insurance and real estate, stood at 9.4 percent in the second quarter, against 9.9 percent recorded in same quarter last fiscal.
Finance Minister P Chidambaram had earlier said that the economy faces a "difficult situation" and the way to overcome this difficult situation is through innovation and increasing the production of goods and services.