Indian economy grew at a better- than-expected rate of 5.3% in July-September quarter on account of improved performance of mining, power and certain services sectors.
The Gross Domestic Growth in the second quarter was better than 5.2% of the same period last fiscal but was slower than 5.7% rate achieved in April-June quarter of current fiscal. There were expectations that September quarter growth would fall to 5-5.1% range.
According to data released in New Delhi on Friday by the Central Statistics Office (CSO), the economic growth in first half (April-September) of this fiscal was 5.5% as compared to 4.9% in the same period in 2013-14. The mining sector grew by 1.9% in July-September quarter compared a flat output in same period year-ago. During April-September, the sector grew by 2% compared a contraction of 2% in corresponding period of 2013-14. However, manufacturing sector recorded a meagre growth of 0.1% in the second quarter of 2014-15 as against a growth of 1.3% in same period of 2013-14. During April-September period, the sector grew by 1.8% compared to a growth of 0.1% in first half of previous fiscal.
Electricity, gas and water supply segment grew by 8.7% in second quarter compared to 7.8% in same period last year. During first half of this fiscal, the segment grew by 9.5% compared to 5.8% in six month period of 2013-14. The farm sector, which includes agriculture, forestry and fishing, recorded deceleration in growth at 3.2% in second quarter compared to 5% a year ago. During April-September, the sector grew by 3.5% compared to 4.5% in the same period a year ago. The community, social and personal services sector grew at 9.6% in second quarter compared to 3.6% in the same period last year. During April-September, the segment grew by 9.4% compared to 6.8% in the six month period of 2013-14.
According to the data, the financial services sector grew at 9.5% in second quarter compared to 12.1% in July-September last year. During April-September, the segment grew by 10% compared to 12.5% in first of half of previous fiscal. The construction sector expanded 4.6% in second quarter of this fiscal as against 4.4% growth in the year-ago period. In April-September, the sector grew by 4.7% compared to a growth of 2.7% in the first half of previous fiscal.
Growth in the trade, hotels, transport and communications segment also inched up to 3.8% in the second quarter from 3.6% in the same period of 2013-14. During April-September the sector grew by 3.3% compared to 2.6% in the first half of previous fiscal. Gross Fixed Capital Formation (GFCF), a barometer of investment at current prices is estimated at Rs 8.28 lakh crore in second of this fiscal as against Rs 7.94 lakh crore in second quarter of 2013-14. At constant (2004-05) prices, the GFCF is estimated at Rs 4.98 lakh crore in second quarter of this fiscal as against Rs 4.97 lakh crore in second quarter of 2013-14.
Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 3.43 lakh crore in second quarter of this fiscal as against Rs 2.94 lakh crore year ago. At constant (2004-05) prices, the GFCE is estimated at Rs 1.63 lakh crore in the second quarter of 2014-15 as against Rs 1.48 lakh crore in Q2 of 2013-14. According to the first advance estimates of production of foodgrains, oilseeds and other commercial crops for 2014-15 -- released by the Department of Agriculture and Cooperation on September 9 -- production of cereals, pulses and oilseeds recorded a decline by 6.6%, 13.6% and 12.2% respectively during the Kharif season of 2014-15 compared to production of these crops in the Kharif season of 2013-14.
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