#Economic growth slows to 5.3% in Sept quarter In line with expectations of slower growth, GDP in the quarter ended September grew at 5.3 per cent, after growing at 5.7 per cent in the quarter ended June. However, the numbers are better than what most analysts were expecting. Growth in the quarter ended June was driven by faster growth in the manufacturing sector which grew at 3.5 per cent. But since then industrial growth has slipped considerably. Manufacturing in the quarter ended September grew at 0.1 per cent, in line with the decline witnessed in the Index of Industrial Production (IIP). IIP grew at 0.4, 0.5 and 2.5 per cent in the months of July, August and September respectively. With household demand continuing to remain weak, as witnessed in the consumer durables and non durables segment in IIP, there does not seem to be any rush for fresh investments as capacity utilisation levels remain low, firms are straddled with excess capacity. As a consequence, bank credit offtake continues to remain low. Further, export growth has slowed down considerably, probably on account of weak growth in the Euro Zone and the slowdown in China which together account for roughly 30 per cent of India’s exports. Agriculture, which accounts for 14 per cent of GDP grew at 3.2 per cent in the quarter ended September. For the entire fiscal year, economists expect the sector to grow at 1 per cent due to the base effect, agriculture grew at 4.7 per cent in 2013-14, and the negative impact of deficit monsoons. The ministry of agriculture had earlier forecasted a lower kharif output for cereals, pulses and oilseeds. - See more at: mumbaitalknews/news/details/business/56#sthash.odNQAVkJ.dpuf
Posted on: Sat, 29 Nov 2014 03:19:57 +0000
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