Recovery sign:Indian economy up 6.1 pc in Q1 vs 7.8 pc yr ago

New Delhi, Aug 31 (PTI) Showing signs of recovery, Indian
economy grew by 6.1 per cent during the first quarter of this
fiscal, the highest since the global financial meltdown hit
the shores last September, but erratic monsoon may dampen
growth in coming quarters.

Despite manufacturing and some services like hotels still
to come out of the crisis fully, GDP improved marginally from
5.8 per cent in the previous two quarters, though it was much
higher at 7.8 per cent in the first quarter of last fiscal,
according to figures released by the Central Statistical
Organisation (CSO) Monday.

The rate makes India the second fastest growing economy
among major countries after China, which recorded 7.9 per cent
growth in April-June quarter.

However, stock markets discounted GDP numbers with the
key equity index Sensex down 220 points.

Among sectors, except for manufacturing, farm, trade &
hotel, others particularly mining, electricity and financing,
performed quite well. However, agriculture production may be
impacted by weak monsoon in coming quarters, analysts said.

The worst hit sectors were trade, hotels, transport &
communication, posting 8.1 per cent growth in the first
quarter this fiscal compared to 13 per cent a year ago.
manufacturing was down to 3.4 per cent against 5.5 per
cent and agriculture to 2.4 per cent versus 3 per cent.(More)
PTI