Economic growth declines to 5.3% in July-September quarter
MDT/PTI 30 November 2012

The economic growth in the first six months of FY13 is 5.4%, lower than 7.3% growth registered in same period a year ago

New Delhi: The Indian economy grew by 5.3% during July-September the current financial year (2012-13), pulled down by poor performance of manufacturing and agriculture sectors thus showing persistent signs of slowdown, reports PTI.


The gross domestic product (GDP) had expanded by 6.7% in the same period of last fiscal. It had grown by 5.5% in the first quarter (April-June) of 2012-13.


During the three-month period ended 30th September, the manufacturing sector grew marginally by 0.8%, against 2.9% growth in the same period of 2011-12, according to data released by the Central Statistical Organisation (CSO) on Friday.


Farm sector output expanded by just 1.2% in the July-September period this fiscal against 3.1% in the same period last year.


Mining and quarrying sector, however, showed some improvement and recorded a growth of 1.9% during the quarter, as against a contraction of 5.4% in the second quarter of 2011-12.


The economic growth in the first six month of this fiscal (April-September) is 5.4%, lower than 7.3% 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% compared to 9.5% expansion in the same quarter in year ago.


The growth rate of electricity, gas and water supply also dipped to 3.4% in the second quarter, from 9.8% witnessed in the same quarter of 2011-12.


Construction sector expanded by 6.7% Q2 of 2012-13, as against 6.3% in the year-ago period.


Growth rate of services sector, including insurance and real estate, stood at 9.4% in the second quarter, against 9.9% 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.

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