Economic Growth Declined in July-September Quarter of 2012-2013 Fiscal Year

The economy of India grew just by 5.3 percent in July-September quarter of fiscal year 2012-2013, revealed the Central Statistical Organisation. The economy dropped down the rate of growth because of poor performance of the agriculture as well as manufacturing sectors and it is persistently indicating slowdown signs.

In the previous fiscal year, the gross domestic product (GDP) had grown by 6.7 percent in the same quarter. In the first quarter of 2012-2013, the economy had grown by 5.5 percent.

By the end of the July-September quarter, i.e., on 30 September 2012, the manufacturing sector had grown marginally by just 0.8 percent in comparison to 2.9 percent in the same quarter last year, the Central Statistical Organisation revealed.
 
The output of the farm sector expanded merely 1.2 percent in this quarter in 2012-2013 financial year in contrast to 3.1 percent in same quarter last year.

The economic growth for the time period of April-September in this financial year is 5.4 percent in contrast to 7.3 percent in previous fiscal year. In this quarter in the present fiscal year, hotels, transport, communications as well as trade showed slow pace at 5.5 percent in comparison to 9.5 percent last year in the same quarter.

The construction sector showed signs of improvement where the growth was 6.7 percent as against 6.3 percent last year. Apart from this, the rate of growth in certain service sectors such as real estate and insurance was 9.4 percent as against 9.9 percent in last year’s quarter.

Finance Minister of India P. Chidambaram concluded that the only way to overcome the situation was through increased production as well as innovation.