Economy grows at 5.3 percent in second quarter

New Delhi, Nov 30 (IANS) India’s economy grew at a sluggish 5.3 percent in the second quarter of 2012-13, slipping from the 6.7 percent growth posted in the corresponding quarter last fiscal, official data showed Friday.

The July-September data is lower than the 5.5 percent growth registered in the gross domestic product (GDP) during the quarter ended June 30.

The sluggish growth in the second quarter was mainly on account of a mere 0.2 percent growth in the manufacturing sector, against 3.4 percent in the corresponding quarter the previous fiscal.

The farm sector growth dropped from to 3.1 percent to 1.2 percent.

Similarly, the electricity sector’s growth slumped from 10.5 percent in the second quarter of 2011-12 to 2.8 percent, according to data released by the Central Statistical Organisation (CSO).

However, mining and quarrying sectors showed improvement, with a growth of 1.9 percent from a decline of 5.4 percent in the corresponding quarter last year.

The construction sector grew by 6.7 percent from 6.3 percent posted in the second quarter of 2011-12.

India’s GDP growth slumped to 6.5 percent in 2011-12, even lower than the 6.7 percent level achieved during the global financial crisis of 2008-09.

The economy had expanded by 8.4 percent in 2010-11.

India’s GDP at factor cost at constant (2004-05) prices is estimated at Rs.12,93,922 crore in the second quarter of 2012-13, compared to Rs.12,28,982 crore during the corresponding period last year, showing a growth rate of 5.3 percent, the CSO data showed.

IANS 2012-11-30 14:24:13