India's Q2 FY-12 GDP growth at 6.9%; slowest in 9 quarters

Posted By: Religare
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India's Q2 FY-12 GDP growth at 6.9%; slowest in 9 quarters
India's economy grew by 6.9 per cent in the three months ended September, its weakest in last nine quarters, amid weak global conditions and high interest rates taking a toll.

The GDP growth stood at 8.4 per cent during the same period last year, according to a data released by government on November 30, 2011.

Growth in Asia's third-largest economy fell below 8 per cent for the third straight quarter, as the number stood at 7.7 per cent in the quarter ended June 2011, while 7.8 per cent in quarter previous to the June.

Taking the biggest hit on GDP growth, India's manufacturing sector grew 2.7 per cent in July-September as against 7.8 per cent growth during the same period last year. While the growth was also drastically down from 7.2 per cent recorded in previous quarter ended June 2011.

Farm output growth also dipped to 3.2 per cent from 5.4 per cent a year earlier, and 3.9 per cent in the previous quarter.

Meanwhile, the mining also emerged as a dark spot on India's growth, with the sector reporting negative growth of 2.9 per cent as against the 8 per cent growth during the same period a year ago.

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

The services sector, including insurance and real estate, grew by 10.5 per cent in the September quarter this year, compared to 10.5 per cent expansion in the corresponding period last year.

Meanwhile, the only silver lining in the data released was the robust growth in energy sector, including electricity, gas and water supply, as it grew by 9.8 per cent during the second quarter of current fiscal as against 2.8 per cent growth in year ago period.

Read more about: growth, gdp, economy, government
Story first published: Wednesday, November 30, 2011, 12:30 [IST]
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