Services sector performance in Q3, a mixed bag
Aided by strong growth in agriculture, mining and financial services, the Indian economy grew 8.2 per cent in the third quarter of the current fiscal, up from 7.2 per cent in corresponding quarter in previous fiscal.
This third quarter growth performance is, however, lower than the sequential second quarter growth of 8.9 per cent this fiscal, official data released today by the Central Statistics Office (CSO) showed.
The farm sector grew 8.9 per cent in the third quarter of 2010-11 compared to 1.6 per cent decline in the same quarter in the previous fiscal.
While the mining sector output grew 6 per cent (5.2 per cent), manufacturing sector growth slowed down to 5.6 per cent (11.4 per cent). For the third quarter under review, electricity, gas and water supply saw robust growth of 6.4 per cent (4.5 per cent). Construction sector growth moderated to 8 per cent (8.3 per cent).
The services sector performance was a mixed bag, with financing, insurance, real estate recording a growth of 11.2 per cent (8.5 per cent).
While trade, hotels, transport and communications grew 9.4 per cent (10.8 per cent), community, social and personal services grew 4.8 per cent (7.6 per cent). The CSO has, in its advance estimate, pegged India's GDP growth in 2010-11 at 8.6 per cent. Indian economy grew 8.9 per cent in the first half of the current fiscal.
To achieve average growth of 8.6 per cent in 2010-11, the Indian economy must grow by 8.4 per cent in the fourth quarter. This may not be a big task, given the strong growth impulses in the economy.