01 December 2011

GDP Growth Dips to 6.9 Percent in Q2, Slowest in Two Years

The Indian economy grew at the slowest pace in over two years at 6.9 per cent in the quarter ended September, official data showed Wednesday, amid a slowdown in demand, high inflation and steep interest rates.

 According to the data on gross domestic product (GDP) released by the ministry of statistics and programme implementation, the growth during July-September was the lowest since the 6.3 per cent expansion in the April-June quarter in 2009.

The GDP growth was 7.7 per cent in the quarter ended June and 8.4 percent in the like period of the previous fiscal, the data showed, which also came amid a general slowdown in the global economy and a crisis of sorts in the eurozone.

The latest figures further showed a sluggish manufacturing growth at 2.7 per cent, compared to 7.8 per cent in the like period of last year, while the agriculture output rose 3.2 per cent, against 5.4 per cent. Mining output, in fact, declined 2.9 per cent against 8 per cent.

The construction sector, too, registered a retarded growth of just 4.3 per cent against 6.7 per cent, while the financial, insurance, real estate and other business services grew at a healthy 10.5 percent against 10 per cent.

The electricity and gas sector also rose reasonably well at 9.8 per cent, while the hotels, transport and communication business reported a 9.9 percent increase in output.