GOOD READS

Indian economy grows at a slower 5.3 percent in Q2

New Delhi, Nov 30 (IANS) India's economy grew at a sluggish rate of 5.3 percent in the July-September quarter from a year earlier, government data on the gross domestic product (GDP) Friday showed.

The data, analysts said, underlined the need for financial reforms, speedier clearance of infrastructure projects among other steps to revive the economy.

Finance Minister P. Chidambaram termed the sluggish growth rate as "below expectations" and asked the Reserve Bank of India to cut interest rates, saying its tight money policy was pulling the economy down.

"The growth rate for the first half (H1) of the current financial year works out to 5.4 percent as against 7.3 percent in the H1 of 2011-12. Overall, the growth rate is below our expectations," Chidambaram said in a statement.

The second quarter growth figure is lower than the 5.5 percent registered during the first three months of the 2012-13 fiscal that ended June 30.

In the second quarter of 2011-12, the country had posted a 6.7 percent growth.

Industry associations said the numbers confirmed that economic activity continued to remain sluggish and unless the growth performance in the second half improved considerably, the country would have to settle for a sub-6 per cent growth this year.

"It is essential that the reform agenda is carried forward with vigour and that the recently announced measures are implemented," said R.V. Kanoria, president of FICCI.

The sluggish growth in the second quarter was mainly on account of a mere 0.2 percent growth in the manufacturing sector, against 3.4 percent in the corresponding quarter the previous fiscal.

The farm sector growth dropped from to 3.1 percent to 1.2 percent.

According to Chidambaram, the slowdown in farm output was due to untimely rains in June-July period which has effected the khariff crop.

"The reduction in growth in agriculture and allied sectors has been on account of rainfall being lower than normal particularly in June-July," he added.

"The impact on the khariff crop has pulled down the growth rate."

Similarly, the electricity sector's growth slumped from 10.5 percent in the second quarter of 2011-12 to 2.8 percent, according to data released by the Central Statistical Organisation (CSO).

However, mining and quarrying sectors showed improvement, with a growth of 1.9 percent from a decline of 5.4 percent in the corresponding quarter last year.

The construction sector grew by 6.7 percent from 6.3 percent posted in the second quarter of 2011-12.

India's GDP growth slumped to 6.5 percent in 2011-12, even lower than the 6.7 percent level achieved during the global financial crisis of 2008-09.

The economy had expanded by 8.4 percent in 2010-11.

India's GDP at factor cost at constant (2004-05) prices is estimated at Rs.12,93,922 crore in the second quarter of 2012-13, compared to Rs.12,28,982 crore during the corresponding period last year, showing a growth rate of 5.3 percent, the CSO data showed.

Quiz: How well do you know India's economy?

Question 1

Which of these products is India the world's largest producer of?

Poll Choice Options
  • Wheat
  • Rice
  • Milk
1
2
3
4
5
6
7
8
9
10

Latest News

  • Steady PMIs, sluggish China put brakes on European shares

    European shares edged down on Wednesday after three days of gains as data showing China's economy was still stuttering offset some broadly reassuring European purchasing manager index (PMI) numbers. Data compiler Markit's monthly PMI figures, seen as good indicators of future growth, showed that while France's economy was still a drag, Germany was continuing to power the euro zone's recovery. In Asia, China's stock markets had fallen again and the yuan tumbled to 16-month low after a survey …

  • BSE Sensex hits third consecutive record high
    BSE Sensex hits third consecutive record high

    Reuters Market Eye - The BSE Sensex and the Nifty hit record highs for the third consecutive session on Wednesday on the back of gains in blue-chip stocks. The benchmark index hits a record high of 22,901.65. ... …

  • Gold hovers near 2-1/2 month lows
    Gold hovers near 2-1/2 month lows

    Gold was steady but near its lowest in more than two months on Wednesday, with stronger equities denting the metal's safe-haven appeal and outflows from bullion funds showing weak investor appetite. Spot gold was trading flat at $1,283.50 an ounce by 0640 GMT. But if we break that level, we are going to fall to $1,250," said Yuichi Ikemizu, branch manager for Standard Bank in Tokyo. SPDR Gold Trust, the world's largest gold-backed exchange-traded fund and a good measure of investor …

  • Rupee slips below 61 against the dollar

    Mumbai, April 23 (IANS) The Indian rupee fell below 61 against a dollar for the first time in more than a month Wednesday on continued demands for the greenback from oil importers and weakness in other ... …

  • Credit Suisse upgrades Mahindra & Mahindra to 'outperform'

    Reuters Market Eye - Credit Suisse upgrades Mahindra and Mahindra to "outperform" from "neutral," saying its four-wheeler autos and commercial vehicles will benefit from even a short-lived ... …

IN-DEPTH ANALYSIS & INTERVIEWS

  • This might well be India’s biggest Ponzi scam

    It was just too good to be true. Ashok Khital, 45, displays every symptom of a man who knows he's been conned. …

  • India's star studded football league

    High and mighty including Sachin, Salman & Sun Group buy ISL teams …

  • Leaderspeak with Rajesh Janey

    Rajesh Janey, President - India & SAARC, EMC shares many firsts in his life. …

  • Seed of Doubt

    Field trials have been allowed again in India. But two decades after their global launch, genetically modified (GM) crops remain controversial. …

  • Power Hungry

    Gujarat has power round-the-clock. Most other states do not. Why this will matter in the general elections. …

  • Etcetera

    The most keenly watched contest of the current general election will be the one for the Varanasi parliamentary seat, where the Bharatiya Janata Party's prime ministerial hopeful Narendra Modi squares off ... …

  • Economy vs Democracy

    As the country gets election fever, cash comes out of mattresses and turns into liquor, gifts, and food. But it is not bad for the health of the economy, reports Sarika Malhotra from the trenches. …

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    16.71-0.14-0.83%
    UNITECH.BO
    14.43-0.15-1.03%
    SUZLON.BO
    120.65+7.25+6.39%
    FRL.BO
    69.10+7.15+11.54%
    MANGCHEM.BO
    54.50+1.75+3.32%
    HCLINFO.BO
  • Price % Gainers
    Price % Gainers
    NamePriceChange% Chg
    16.20+2.70+20.00%
    JAGSONPH.BO
    51.95+7.35+16.48%
    RUSHIL.BO
    14.80+2.01+15.72%
    SOUTHPET.BO
    23.45+2.55+12.20%
    NELCAST.BO
    22.70+2.35+11.55%
    KILITCHD.BO
  • Price % Losers
    Price % Losers
    NamePriceChange% Chg
    -10.95-100.00%
    4THGEN.BO
    -17.30-100.00%
    ALFAICA.BO
    -16.81-100.00%
    AMAL.BO
    -11.73-100.00%
    BORAX.BO
    -29.95-100.00%
    BRADYM.BO
  •  
    Recent Quotes
    Symbol Price Change % ChgChart 
    Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
    You need to enable your browser cookies to view your most recent quotes.
  • Recent Quotes News

    •  
      Sign-in to view quotes in your portfolios.