India’s Q3 growth slumps to 4.5 percent

New Delhi : India’s economic growth slumped to 4.5 percent in the third quarter of the current financial year on poor show of manufacturing, mining and farm sectors.

Government data released by the Central Statistics Office (CSO)just hours after the union budget Thursday showed that the Indian economy remained under pressure despite the reform push.

The quarterly gross domestic product (GDP) at factor cost at constant (2004-05) prices for third quarter of 2012-13 is estimated at Rs.14,11,594 crore, as against Rs.13,51,252 crore in the corresponding quarter of previous year, showing a growth rate of 4.5 percent, said the CSO.

The GDP expansion in the October-December quarter was much lower than the 5.4 percent growth registered in the first half of the year.

Manufacturing, mining and agriculture sectors remained a big drag on growth. Mining output slumped to 1.4 percent in the quarter under review. Farm sector registered a paltry growth of 1.1 percent and manufacturing 2.5 percent in the quarter ended Dec 31, 2012.

Finance, insurance, real estate and business services registered a growth of 7.9 percent, while construction grew 5.8 percent. Community, social and personal services grew 5.4 percent, trade, hotels, transport and communication 5.1 percent and electricity, gas and water supply 4.5 percent in the quarter under review.

Presenting the union budget for 2013-14 in Lok Sabha, Finance Minister P Chidambaram said India’s economic growth was much below potential.

“In the current year, the CSO has estimated growth at 5 percent while the RBI has estimated growth at 5.5 percent. Whatever may be the final estimate, it will be below India’s potential growth rate of 8 percent,” Chidambaram said.

The Economic Survey for 2012-13 released a day ahead of the general budget pegs the gross domestic product (GDP) growth for the next financial year at 6.1 to 6.7 percent.