Declining industrial output pulls down Q4 GDP growth to 5.8%

New Delhi, May 29 (PTI) The declining output of the
manufacturing sector pulled down India's economic growth rate
in the fourth quarter of 2008-09 to 5.8 per cent and 6.7 per
cent in the entire fiscal.

Impacted by the global financial crisis, manufacturing
sector output during the fourth quarter (January-March) dipped
by 1.4 per cent against an increase of 6.3 per cent in the
corresponding period a year earlier.

As regards the entire 2008-09, industrial output growth
decelerated sharply to 2.4 per cent from 8.2 per cent in the
previous fiscal.

India recorded a GDP growth rate of 9 per cent during
2007-08. GDP growth in the fourth quarter of 2007-08 was 8.6
per cent.

The Central Statistical Organisation (CSO) in its advance
estimates had projected a growth rate of 7.1 per cent.

When contacted, Planning Commission Deputy Chairman
Montek Singh Ahluwalia said, "This was expected."

Agriculture and allied sectors during the fourth
quarter recorded a growth rate of 2.7 per cent as compared to
2.2 per cent in the corresponding period of the previous
fiscal.

The growth rate of the trade, hotels, transport and
communications sector more than halved to 6.3 per cent
from 13.8 per cent during the fourth quarter in 2007-08.

Contrary to expectations, the construction sector
recorded a growth rate of 6.8 per cent during the quarter,
which is nearly the same as in the corresponding period in the
previous fiscal.

The growth rate of the mining and quarrying sector
dipped to 1.6 per cent as compared to 4.7 per cent during
fourth quarter in 2007-08.

As far as 2008-09 is concerned, the GDP growth rate at
6.7 per cent is smaller than the CSO's advance estimate of 7.1
per cent but the same as projected by the Reserve Bank of
India.

The central bank in its annual monetary policy for the
current fiscal projected a growth rate of 6.5-6.7 per cent for
2008-09.

As regards the sectors, the agriculture and allied
sector growth rate slipped to 1.6 per cent during the fiscal
as compared to 4.9 per cent in the previous financial year.

The manufacturing sector growth rate during 2008-09
declined sharply to 2.4 per cent from 8.2 per cent in the
previous fiscal.

Besides poor showing by manufacturing, the growth rate
of the construction sector too decelerated to 7.2 per cent
during 2008-09 from over 10 per cent a year ago.

But for the mining and quarrying industry, all other
segments of the economy witnessed deceleration in growth
rates.

Mining and quarrying sector output rose to 3.6 per
cent from 3.3 per cent in the previous fiscal. PTI IND
RKM
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