Economic growth slows to 5.3% in Sept quarter

Indian economy grew at a better-than-expected rate of 5.3 per cent 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 per cent of the same period last fiscal but was slower than 5.7 per cent rate achieved in April-June quarter of current fiscal. There were expectations that September quarter growth would fall to 5-5.1 per cent range.

According to data released by the Central Statistics Office (CSO), the economic growth in first half (April-September) of this fiscal was 5.5 per cent as compared to 4.9 per cent in the same period in 2013-14.

The mining sector grew by 1.9 per cent in July-September quarter compared a flat output in same period year-ago. During April-September, the sector grew by 2 per cent compared a contraction of 2 per cent in corresponding period of 2013-14.

However, manufacturing sector recorded a meagre growth of 0.1 per cent in the second quarter of 2014-15 as against a growth of 1.3 per cent in same period of 2013-14. During April-September period, the sector grew by 1.8 per cent compared to a growth of 0.1 per cent in first half of previous fiscal.

Electricity, gas and water supply segment grew by 8.7 per cent in second quarter compared to 7.8 per cent in same period last year. During first half of this fiscal, the segment grew by 9.5 per cent compared to 5.8 per cent in six month period of 2013-14.

The farm sector, which includes agriculture, forestry and fishing, recorded deceleration in growth at 3.2 per cent in second quarter compared to 5 per cent a year ago. During April-September, the sector grew by 3.5 per cent compared to 4.5 per cent in the same period a year ago.

The community, social and personal services sector grew at 9.6 per cent in second quarter compared to 3.6 per cent in the same period last year. During April-September, the segment grew by 9.4 per cent compared to 6.8 per cent in the six month period of 2013-14.

According to the data, the financial services sector grew at 9.5 per cent in second quarter compared to 12.1 per cent in July-September last year. During April-September, the segment grew by 10 per cent compared to 12.5 per cent in first of half of previous fiscal.

The construction sector expanded 4.6 per cent in second quarter of this fiscal as against 4.4 per cent growth in the year-ago period. In April-September, the sector grew by 4.7 per cent compared to a growth of 2.7 per cent in the first half of previous fiscal.

Growth in the trade, hotels, transport and communications segment also inched up to 3.8 per cent in the second quarter from 3.6 per cent in the same period of 2013-14. During April-September the sector grew by 3.3 per cent compared to 2.6 per cent 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 per cent, 13.6 per cent and 12.2 per cent respectively during the Kharif season of 2014-15 compared to production of these crops in the Kharif season of 2013-14.