The Gross Domestic Product (GDP) growth of India decelerated even more to 4.4 percent, the slowest rate of expansion in 4 years, i.e., since 2008 economic meltdown. The GDP growth stood at 4. 4 percent in the first quarter (April-June) of the fiscal year 2013-14. The reason for this drop is poor performance of the manufacturing as well as mining sector.
In the first quarter of 2012-13, the economic growth resulted out of GDP expansion of 5.4 percent. In the fourth quarter (January-March) of 2012-13, the GDP growth again fell down to 4.8 percent. In the first quarter of 2013-14 fiscal year, the actual performance of the economy came out to be much lower than anticipated. A total of seven out of eight sectors displayed contraction in growth or the lower rate of expansion.
As a result, there is a need for combined action by the Reserve Bank of India (RBI) and the Union Government of India. The GDP data released by the Central Statistical Organisation (CSO) revealed that mainly mining sector was responsible for bringing down the economic growth of India. In this sector, the rate of growth was 2.8 percent in April-June quarter in comparison to 0.4 percent in same period during 2012-13 fiscal year. The manufacturing sector also brought down the growth. This was seen at 1.2 percent from 1 percent in same quarter during 2012-13 financial year.
Significant decrease was also observed in other sectors such as transport and hotels, power generation as well as construction.