India’s Economic Growth Rate dipped to 6.1% in the October-December Quarter of 2011-12

As per the data released by the Central Statistical organisation (CSO) on 29 February 2012, India’s economic growth rate dipped to 6.1% in the third quarter (October-December ) of 2011-12 due to poor performance of the manufacturing, mining and farm sectors. GDP in April-December period of 2011-12 also moderated to 6.9% from 8.1% in the April-December period 2010-11.

The growth registered in October-December 2011-12 was the lowest growth registered in more than two years. The gross domestic product (GDP) growth the in third quarter (October-December) of 2010-11 fiscal was 8.3%.

In the quarter ending 31st December, the manufacturing sector growth dipped to a meagre 0.4% from 7.8% in the corresponding period of 2010-11. Farm output expanded by just 2.7% during the quarter, compared to 11% in October-December period of 2010-11.

Mining and quarrying production contracted by 3.1% in the quarter ending 31 December 2011-12 as against a growth of 6.1% achieved in the third quarter (October-December) of 2010-11.

Growth in the construction sector also slowed to 7.2% in the third quarter of 2011-12 from 8.7% in the third quarter of 2010-11. The trade, hotels, transport and communications segments’ growth increased by just 9.2% in the quarter under review(October-December), as against 9.8% expansion in third quarter of 2010-11. The growth of the services sector, including insurance and real estate also slowed to 9.9% in the third quarter ended 31 December compared to 11.2% expansion in third quarter of 2010-11.

However, electricity, gas and water supply grew by robust 9% in the October-December period, compared to 3.8% growth in October-December quarter of 2010-11.

The Central Statistical Organisation (CSO) pegged the GDP growth for 2011-12 at 6.9%, while the Prime Minister’s Economic Advisory Council (PMEAC) expects the GDP to be 7.1 per cent. The Indian economy had expanded by 8.4% in 2010-11.