The economy has grown at a reasonable 6.1 per cent in the the first quarter (April-June) of this fiscal against 5.8 per cent growth in the previous quarter, despite the global financial crisis impacting manufacturing and certain services sectors. The GDP growth in the corresponding quarter in the previous year was 7.8 per cent.
According to figures released by the Central Statistical Organisation (CSO) here on Monday, mining, electricity and financing sectors performed well during the quarter. The worst hit sectors were trade, hotels, transport and communication, posting 8.1 per cent growth during the quarter under review compared to 13 per cent in the year ago period.
Manufacturing was down to 3.4 per cent (5.5 per cent) and agriculture to 2.4 per cent (3 per cent).
The growth is in line with the Reserve Bank of India and government expectations, which peg the GDP growth at six per cent with an upward bias.
“I am glad that the worst may be over and we expect to see improved performance in the subsequent quarters. The GDP numbers are very good, it is consistent with what we are hoping for,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here.
With encouraging growth in the June quarter, the government expects the economy to grow at 6.5 per cent this fiscal. Electricity generation and mining output were the best performers as they grew by 6.2 per cent and 7.9 per cent, respectively, in the first quarter of this fiscal against 2.7 per cent and 4.6 per cent in the year ago period.
Finance, insurance, real estate and business services expanded by 8.1 per cent (6.9 per cent). Construction was slightly down to 7.1 per cent from 8.4 per cent and community services by 6.8 per cent from 8.2 per cent.
Meanwhile, the Planning Commission will have its full fledged meeting on Tuesday chaired by Prime Minister Manmohan Singh to take stock of the economy.