Indian Economy Recorded 8.9 per cent Growth in Second Quarter

Indian Economy recorded 8.9% growth for the July-Sept quarter of the current fiscal year.

Dec 2, 2010 13:58 IST

According to the Central Statistical Organisation (CSO) data released on 30 November 2010, Indian economy grew 8.9 per cent in the second quarter of the current fiscal 2010-11. The corresponding period of 2009 had seen growth of 8.7%. The robust growth recorded in the July-September quarter is attributed to farm sector which in the second quarter recorded a growth rate of 4.4 per cent, up from 0.9 per cent in the corresponding period in 2009. The manufacturing sector during the same period recorded a growth rate of 9.8 per cent as compared to 8.4 per cent during the same period in 2009.

However the second quarter growth is lower than China’s expansion of 9.6% though the pace of growth is much faster than the US (1.9%) and the Eurozone (2.5%). According to economists growth moderation is possible in the remaining two quarters and as a result pressure on Reserve Bank of India (RBI) to increase interest rates further will ease as inflation continues to remain high.