The Hindu Business Line : GDP growth slows in Q2

THE economic growth slowed to 6.6 per cent during the second quarter ended September from 7.4 per cent in the previous quarter, due to a negative growth in the agriculture sector.

The agricultural slowdown was so pronounced that even the robust performance of the manufacturing sector - 9.3 per cent, against 8 per cent in the previous quarter - failed to contain the fall in overall GDP growth.

Consolidated growth in the first six months this fiscal (April-September) stood at 7 per cent, against 6.9 per cent in the same period last year. The agriculture sector registered a negative growth of 0.8 per cent compared to 3.4 per cent in the first quarter this fiscal, according to quarterly estimates of gross domestic product (GDP) released by the Government today.

Apart from agriculture, other sectors contributing to the economic slowdown were mining, financial, real estate and insurance services.

While mining grew at 4.8 per cent from 6.1 per cent in the first quarter, financial, real estate and insurance services registered a lower growth of 5.9 per cent compared to 7 per cent in April-June period.

The construction sector, however, grew by a healthy 5.2 per cent, against 3.6 per cent in the previous quarter. GDP at factor cost on constant prices (1993-94) stood at Rs 3,47,308 crore, compared to Rs 3,52,119 crore in the first quarter of 2004-05. For the six months ended September, however, GDP grew to Rs 6,99,427 crore from Rs 6,53,699 crore in the same period last year.

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