Q4 GDP growth slumps to 5.3% as manufacturing shrinks

K.R.Srivats

http://www.thehindubusinessline.com/industry-and-economy/economy/article3475946.ece?homepage=true

New Delhi, May 31: 

Indian economy grew 5.3 per cent in the fourth quarter of 2011-12, the lowest quarterly growth rate in three years.

The fourth quarter GDP growth, lowest quarterly growth for 2011-12, was pulled down by weakness in industrial performance, official data released by the central statistics office showed.

For the fourth quarter under review, agriculture grew 1.7 per cent against growth of 7.5 per cent in January-March quarter of 2010-11.

While mining grew 4.3 per cent (0.6 per cent), manufacturing contracted 0.3 per cent (growth of 7.3 per cent).

While construction grew 4.8 per cent (8.9 per cent), electricty output was up 4.9 per cent (5.1 per cent).

Services sector

On the services sector, financing, real estate, insurance saw robust growth of 10 per cent, the same growth level as seen in the quarter ended March 2010.

Trade, hotels saw fourth quarter growth of 7 per cent, lower than 11.6 per cent growth seen in the same quarter in previous year.

India's GDP grew 6.1 per cent in the third quarter of 2011-12. After factoring in the fourth quarter data, the revised estimate for GDP growth for 2011-12 has now been pegged at 6.5 per cent, lower than the advance estimate of 6.9 per cent put out in February this year. (Economy grew 8.4 per cent in 2010-11 and 9.2 per cent in the fourth quarter of 2010-11.)

Downward revision

The Central Statistics Office (CSO) attributed the downward revision in GDP growth rate for 2011-12 to lower performance in manufacturing and 'trade, hotels, transport and communications' than anticipated.

For 2011-12, the revised GDP growth estimate has factored in agricultural growth at 2.8 per cent, higher than the level of 2.5 per cent at the Advance Estimate stage. The manufacturing sector output is pegged at 2.5 per cent, lower than the 3.9 per cent growth put out at the advance estimate stage.

Construction sector is now estimated to have grown 5.3 per cent in 2011-12, higher than 4.8 per cent estimated earlier in February this year.