Economic growth dips to 6.9% in Q2, at 7.3% in first half

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Economic growth dips to 6.9% in Q2, at 7.3% in first half
New Delhi, Nov 30 (PTI) Strengthening the indications of an economic slowdown, India's GDP grew by just 6.9 per cent in the second quarter this fiscal in comparison to 8.4 per cent expansion in the same period last year due to poor performance of the manufacturing, agriculture and mining sectors.

Gross domestic product (GDP) growth in the first half (April-September) of FY2011-12 also moderated to 7.3 per cent from 8.6 per cent in the first six months of the previous fiscal, as per the latest data released by the government today.

During the three-month period ending September 30, 2011, growth in the manufacturing sector dipped to a meagre 2.7 per cent from 7.8 per cent in the corresponding period of 2010-11.

Farm output also exhibited a similar trend and expanded by just 3.2 per cent during the quarter under review, compared to 5.4 per cent growth in the corresponding period last fiscal.

Mining and quarrying production declined by 2.9 per cent during the quarter under review, as against a growth of 8 per cent in the July-September quarter of the previous fiscal.

Growth in the construction sector also slowed to 4.3 per cent during the quarter from 6.7 per cent in the same period a year ago.

Furthermore, the trade, hotels, transport and communications segments grew by just 9.9 per cent in the quarter under review, as against 10.2 per cent expansion in the year-ago period.

However, electricity, gas and water supply grew by a robust 9.8 per cent in the July-September period, compared to 2.8 per cent growth in the corresponding year-ago period.

The other silver lining for the country's economy was the services sector, including insurance and real estate, which grew by 10.5 per cent in the quarter ended September this year, compared to 10 per cent expansion in the corresponding period last year.

PTI

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