India's GDP at 8.5%; Q4 growth slips to 7.8%

Confirming fears of a slowdown, India's economy grew by just 7.8 % in the fourth quarter ending March this year, mainly due to poor performance of the manufacturing sector, as against 9.4 per cent in the same three-month period of the previous fiscal.

However, economic growth, as measured by the gross domestic product, improved to 8.5 % in 2010-11 from 8% in 2009-10 due to better farm output and construction activities and financial services performance.

Meanwhile, the GDP growth figures for the first and third quarters of FY'11 have been revised upward.

While the GDP growth figure for the first quarter has been pegged at 9.3 %-- as against the earlier estimate of 8.9 per cent -- the Q3 GDP growth has been revised upward to 8.3 % from 8.2 %

During the quarter ending March 31 this year, growth in the manufacturing sector slowed down to 5.% from 15.2 %in the same quarter of 2009-10.

In addition, the mining and quarrying sector grew by only 1.% during the quarter under review, as against 8.9 %in the fourth quarter of the previous fiscal.

Furthermore, the trade, hotels, transport and communications segment grew by 9.3 % in the March quarter this year, as against 13.7 %expansion in the same the period of 2010.

However, services including banking and insurance grew by 9 per cent in the March quarter this year, compared to 6.3 per cent in the corresponding period last year.
However manufacturing sector growth slowed down to 8.3 per cent in the 2010-11 financial year from 8.8 per cent in 2009-10.

Growth of the mining and quarrying sector also slowed to 5.8 % in 2010-11 from 6.9 % in 2009-10.

The electricity, gas and water supply segment grew by 5.7 % last fiscal, compared to 6.4 % in 2009-10.

Source: http://www.rediff.com/business
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