Industry & Economy
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Economy
Third quarter GDP grows at 8.4%
Our Bureau
New Delhi, Feb 29
Indian economy grew 8.4 per cent in October-December 2007, the slowest pace since last quarter of 2005-06.
This growth performance was weaker than the 8.9 per cent GDP growth recorded in second quarter of current fiscal and 9.1 per cent recorded in October-December 2006.
The Central Statistical Organisation (CSO) and the Economic Survey 2007-08 have projected a GDP growth of 8.7 per cent for 2007-08. The Finance Minister, Mr P. Chidambaram, has expressed confidence that the economic growth for 2007-08 would finally turn out to be better than the 8.7 per cent projected by the CSO in its advance estimates.
Laggards
The third quarter GDP growth performance in current fiscal has been pulled down by lower growth rates in agriculture, mining, electricity and construction sectors. Construction sector grew 8.4 per cent in Q3 of 2007-08, lower than the 10.7 per cent and 11.1 per cent recorded in Q1 and Q2, the data released by the CSO on Friday showed.
The CSO has pegged the quarterly estimate of GDP for October-December 2007 at Rs 12,43,901 crore (at current market prices).
Manufacturing
For the quarter under review, manufacturing sector recorded a growth of 9.3 per cent, higher than the 8.6 per cent recorded in second quarter.
Electricity, gas and water sector grew 5.3 per cent, lower than the 8.3 per cent and 7.3 per cent recorded in the first and second quarters of the current fiscal.
Agriculture grew 3.2 per cent in Q3 this fiscal, lower than 3.8 per cent and 3.2 per cent recorded in Q1 and Q2.
Mining grows
Mining and quarrying sector recorded a growth of 4.9 per cent in Q3, lower than the 7.7 per cent in Q2.
Services such as trade, hotels, transport and financial services continued to record buoyant growth rates at over 11 per cent.
Advice to banks
Faced with slower growth in credit off take, the Finance Minister had last month advised public sector banks to cut interest rates and boost loans for homes and consumer goods, which are key to economic growth.
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