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India's economy grows at 7.9% in Q1

(Business Standard 29th August 2008)

India's Gross Domestic Product (GDP) growth for the April-June 2008 period has slowed down to 7.9 per cent, as against 9.2 per cent over the corresponding quarter of the previous year. The GDP has been showing an average growth of over 8 per cent over the last four years. The economic activities which registered significant growth in Q1 of 2008-09 over Q1 of 2007-08 are, 'manufacturing' at 5.6 per cent, 'construction' at 11.4 per cent, 'trade, hotels, transport and communication' at 11.2 per cent, 'financing, insurance, real estate and business services' at 9.3 per cent, and 'community, social and personal services' at 8.4 per cent.

The growth rates in 'agriculture, forestry & fishing', 'mining & quarrying' and 'electricity, gas & water supply' are estimated at 3.0 per cent, 4.8 per cent and 2.6 per cent, respectively during this period.

The production of crops rice, wheat, coarse cereals and pulses during the Rabi season (which ended in June, 2008) of 2007-08 recorded growth rates of 3.3 per cent, 3.4 per cent, 8.6 per cent, and (-) 7.9 per cent, respectively over the production in the corresponding season of previous agriculture year. Among the commercial crops, the production of oilseeds declined by
12.6 per cent during the rabi season of 2007-08, while the production of cotton and sugarcane recorded growth rates of 14.0 per cent and (-) 4.2 per cent, respectively during the agriculture year 2007-08.

The GDP data, released by the Central Statistical Organisation (CSO), Ministry of Statistics and Programme Implementation here today said that among the services sectors, the key indicators of railways, namely, the net tonne kilometres and passenger kilometers have shown growth rates of 9.3 per cent and 7.0 per cent, respectively during Q1 of 2008-09.

In the transport and communication sectors, the production of commercial vehicles, cargo handled at major ports, cargo handled by the civil aviation, passengers handled by the civil aviation and the total stock of telephone connections (including WLL and cellular) registered growth rates of 9.1 per cent, 8.8 per cent, 8.3 per cent, 4.4 per cent and 44.8 per cent, respectively during Q1 of 2008-09 over Q1 of 2007-08. The other key indicators, namely, aggregate bank deposits, and bank credits have shown growth rates of 21.1 per cent, and 25.8 per cent, respectively during Q1 of 2008-09 over Q1 of 2007-08.

The Index of Industrial Production (IIP), the index of mining, manufacturing and electricity, registered growth rates of 4.7 per cent, 5.6 per cent and 2.0 per cent, respectively during Q1 of 2008-09, as compared to the growth rates of 2.7 per cent, 11.1 per cent and 8.3 per cent in these sectors during Q1 of 2007-08. The key indicators of construction sector, namely, cement and finished steel registered growth rates of 5.8 per cent and 4.5 per cent, respectively during Q1 of 2008-09, as against the growth rates of 7.2 per cent and 5.4 per cent, respectively in Q1 of 2007-08.

Quarterly GDP at factor cost at constant (1999-2000) prices for Q1 of 2008-09 is estimated at Rs 7,82,357 crore, as against Rs. 7,24,949 crore in Q1 of 2007-08.

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