[1]New Delhi, Aug. 31: India’s GDP grew fastest in nearly three years during April-June period (Q1) this year at 8.8 per cent led by good performance by the manufacturing sector.
“The numbers are quite encouraging,” said the Union finance minister, Mr Pranab Mukherjee. He expressed hope that the economy will grow by 8.50 to 8.75 per cent in the current fiscal year. “From the numbers, the further encouraging point is 12.4 per cent growth, which has been registered in the manufacturing sector. I think this is the highest growth rate in the last 11 quarters. I do hope it will be possible to maintain this level of growth,” the minister said.
He said that the country need to reach to four per cent growth in agriculture to have sustainable growth.
The GDP had grown by 8.6 per cent during January-April 2010. The economy had grown by 7.4 per cent in 2009-10 and merely 6.7 per cent in 2008-09 due to the financial crisis. Prior to this, it was growing at an average rate of nine per cent for three years. “I don’t think that India is out of the woods. We are reverting back to our growth trend but there are still risks,” said Crisil, chief economist, Mr D.K. Joshi. He said that the worrying part is that the private consumption expenditure in the first quarter has grown slowest “that I know in couple of years.”
Mr Joshi felt that in the coming quarters the GDP growth will be less than first quarter as the high base effect kicks in. “The GDP will grow by around eight per cent in 2010-11,” said Mr Joshi.
The industrial growth is likely to moderate with industrial production growing slowest in 13 months in June. “But the slow industrial growth is likely to be compensated by a good growth in the agriculture,” said Mr Joshi. During Q1, industry grew by 10.3 per cent as against 4.6 per cent a year ago, agriculture grew by 2.8 per cent as against 1.9 per cent a year ago)and services grew by 9.7 per cent as against 7.9 per cent.
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[1] http://archive.asianage.com/gdp-growth-hits-3-yr-high-310810jpg-653