ID :
108825
Sat, 02/27/2010 - 10:19
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Shortlink :
https://www.oananews.org//node/108825
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Q3 GDP growth slows down to 6 per cent
New Delhi, Feb 26 (PTI) The economic growth slipped
drastically to 6 per cent in the third quarter of the fiscal,
around the same level witnessed during global financial
meltdown, even as the Indian Government partially rolled back
stimulus on the premise that the economy is on a rebound.
The drastic slippage could be gauged from the fact that
the economy grew by 7.9 per cent in the previous quarter,
which raised the hopes that the economy is now on sustained
recovery trajectory.
Economic growth in the third quarter came down due to a
2.8-percentage points contraction in farm output due to the
worst drought in 40 years as well as a 2.2-percentage points
downward spiral in community, social and personal services,
the Government said.
The growth is almost same as witnessed after deepening
global crisis impacted the economy from the middle of
September 2008.
In the third quarter of the last fiscal, the economy
expanded by 5.8 per cent as per the provisional estimates.
However, this figure now stands revised at 6.2 per cent,
according to the GDP data released Friday.
To achieve a 7.2 per cent growth this fiscal, as
estimated by the Central Statistical Organisation, the economy
would have to grow by over 8 per cent in the current quarter.
However, Finance Secretary Ashok Chawla said," It (slow
growth) is not very surprising." He said performance has to
improve in the fourth quarter to achieve growth at the level
of CSO estimates.
Planning Commission of India deputy chairman Montek
Singh Ahluwalia, however, said, "it (economic growth) is on
expected lines and we are hopeful of 7.2 per cent growth this
fiscal."
The Government is expecting a 7.5 per cent GDP growth
this fiscal. The manufacturing sector continued its upward
march expanding by 14.3 per cent against 1.3 per cent in the
same period last year.
Construction grew by 8.7 per cent against 6.5 per cent,
mining and quarrying by 9.6 per cent versus 9.5 per cent and
construction by 8.7 per cent compared to 6.5 per cent.
However, electricity, gas and water supply slowed down to
4.9 per cent from 7.4 per cent.
Services like trade, hotels, transport and communication
rose to 10 per cent from 8.5 per cent and trade, while
financing insurance, real estate and business services
expanded by 7.8 per cent against 7.1 per cent.
While it may be argued that economic growth is down
because of contraction in farm output and hence rollback of
stimulus might not impact economic recovery.
However, community, social and personal services are also
down, which means that the impact of higher salaries given to
Government employees are now petering out.
Also, slow growth in electricity generation may impact
future industrial growth as well. PTI KKS
KAB
drastically to 6 per cent in the third quarter of the fiscal,
around the same level witnessed during global financial
meltdown, even as the Indian Government partially rolled back
stimulus on the premise that the economy is on a rebound.
The drastic slippage could be gauged from the fact that
the economy grew by 7.9 per cent in the previous quarter,
which raised the hopes that the economy is now on sustained
recovery trajectory.
Economic growth in the third quarter came down due to a
2.8-percentage points contraction in farm output due to the
worst drought in 40 years as well as a 2.2-percentage points
downward spiral in community, social and personal services,
the Government said.
The growth is almost same as witnessed after deepening
global crisis impacted the economy from the middle of
September 2008.
In the third quarter of the last fiscal, the economy
expanded by 5.8 per cent as per the provisional estimates.
However, this figure now stands revised at 6.2 per cent,
according to the GDP data released Friday.
To achieve a 7.2 per cent growth this fiscal, as
estimated by the Central Statistical Organisation, the economy
would have to grow by over 8 per cent in the current quarter.
However, Finance Secretary Ashok Chawla said," It (slow
growth) is not very surprising." He said performance has to
improve in the fourth quarter to achieve growth at the level
of CSO estimates.
Planning Commission of India deputy chairman Montek
Singh Ahluwalia, however, said, "it (economic growth) is on
expected lines and we are hopeful of 7.2 per cent growth this
fiscal."
The Government is expecting a 7.5 per cent GDP growth
this fiscal. The manufacturing sector continued its upward
march expanding by 14.3 per cent against 1.3 per cent in the
same period last year.
Construction grew by 8.7 per cent against 6.5 per cent,
mining and quarrying by 9.6 per cent versus 9.5 per cent and
construction by 8.7 per cent compared to 6.5 per cent.
However, electricity, gas and water supply slowed down to
4.9 per cent from 7.4 per cent.
Services like trade, hotels, transport and communication
rose to 10 per cent from 8.5 per cent and trade, while
financing insurance, real estate and business services
expanded by 7.8 per cent against 7.1 per cent.
While it may be argued that economic growth is down
because of contraction in farm output and hence rollback of
stimulus might not impact economic recovery.
However, community, social and personal services are also
down, which means that the impact of higher salaries given to
Government employees are now petering out.
Also, slow growth in electricity generation may impact
future industrial growth as well. PTI KKS
KAB
