Indian economy posts 8.1pc growth in Q1
Pallab Bhattacharya, New Delhi
Spurred by a robust performance of manufacturing and service sector output, India's $700-billion economy grew by 8.1 percent in April-June quarter this year, the fastest in a year. The strong performance came despite an unimpressive performance of agriculture sector and steep rise in global oil price. According to official data released by Central Statistical Organization, manufacturing output was up 11.3 percent while services sector grew 9.8 percent and inflation was reined in at less than four percent with interest rates remained stable. The industry sector, comprising manufacturing, electricity and other utilities, reported an 11.3 percent growth in the first quarter (April-June) of the current financial year against 6.8 percent in the corresponding quarter of last year. Services sector -- financing, insurance, hotels, communication, trade and community and social services -- had grown 9.5 percent in the same quarter last fiscal. Agriculture output, which accounts for about a quarter of India's GDP and employs 70 percent of workforce, was two percent in the first quarter of this fiscal year, as compared to 1.8 percent in the previous quarter. However, economic analysts hoped that agriculture output would pick up in coming months due to good monsoon although parts of the country got lower rainfall. The government and Reserve Bank of India estimated a seven percent growth for the current fiscal year, slightly up from 6.9 percent growth in the previous financial year.
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