GDP growth hits decade low of 5% in fiscal 2013
Economy registers marginal upswing at 4.8 per cent during the Q4; Finance Ministry projects 6.1-6.7% growth...
Economy registers marginal upswing at 4.8 per cent during the Q4; Finance Ministry projects 6.1-6.7% growth during the current fiscal
New Delhi (PTI): Economic growth rate slipped to a decade low of 5 per cent in 2012-13 on account of poor performance of farm, manufacturing and mining sectors, raising hopes for rate cut by Reserve Bank to boost economy.A The growth rate in the fourth quarter ending on March 31, stood at 4.8 per cent showing a marginal improvement over 4.7 per cent recorded in the third quarter of 2012-13.
"Growth numbers are as per expectations," Finance Minister P Chidambaram said after the CSO released data on national income accounts here on Friday.A According to the finance ministry, the growth in the current fiscal is likely to improve to 6.1-6.7 per cent. Economic growth or gross domestic product (GDP) had expanded by 5.1 per cent in January-March quarter of last fiscal. Economy had grown at 4 per cent in 2002-03.
India's economic growth was at 6.2 per cent for the 2011-12 fiscal. It had grown by 5.4 per cent, 5.2 per cent and 4.7 per cent in the first, second and third quarters, respectively, of 2012-13, the data showed. Prime Minister's Economic Advisory Council Chairman C Rangarajan said: "GDP numbers has been on expected lines as far as manufacturing is concerned perhaps we have reached the bottom. WPI based inflation has slowed, I think there is a greater room for the RBI to act," he added.
According to the CSO data, the manufacturing sector in January-March quarter of 2012-13 grew marginally by 2.6 per cent, against 0.1 per cent growth in the same period of the earlier fiscal.A During 2012-13, the sector under review grew by a meagre one per cent compared to 2.7 per cent in the previous fiscal. Mining and quarrying sector contracted by 3.1 per cent during the fourth quarter of last fiscal, as against growth of 5.2 per cent in the same period of 2011-12. The contraction in mining sector remained unchanged at 0.6 per cent in 2012-13 over the earlier fiscal. Farm sector output rose by a mere 1.4 per cent in the last quarter of FY13 as against 2 per cent in the same quarter of 2011-12.
The agriculture sector grew by just 1.9 per cent in 2012-13 compared to 3.6 per cent in 2011-12. The growth rate of electricity, gas and water supply slowed to 2.8 per cent in the fourth quarter from 3.5 per cent witnessed in the same quarter of 2011-12. The segment grew by 4.2 per cent in 2012-13 compared to 6.5 per cent in previous fiscal. Construction sector expanded by 4.4 per cent in Q4 of 2012-13, as against 5.1 per cent in the year-ago period. The segment grew by 4.3 per cent in 2012-13 as against 5.6 per cent in the previous fiscal.
Trade, hotels, transport and communications segment grew at 6.2 per cent in the January-March quarter this year as against 5.1 per cent in the same period a year ago. The sector grew at 6.4 per cent in 2012-13 compared to 7 per cent in the earlier fiscal. Growth rate of services sector, including insurance and real estate, stood at 9.1 per cent in 4th quarter against 11.3 per cent in same period of 2011-12.
The segment grew by 8.6 per cent in 2012-13 compared to 11.7 per cent in 2011-12. Community social and personal services registered a growth of 4 per cent in Q4 period compared to 6.8 per cent in the January-March quarter of 2011-12. The segment grew by 6.6 per cent in 2012-13 as against 6 per cent in the previous fiscal.