Fiscal 2012-13 economic growth slowest in a decade

New Delhi :  The Indian economy grew by a sluggish five percent in the financial year ended March 31, 2013, the slowest levels in 10 years, official data showed Friday.

According to data released by the Central Statistics Office (CSO), the country’s gross domestic product (GDP) grew by just five percent from 6.2 percent achieved during 2011-12.

The country’s gross domestic product (GDP) at constant (2004-05) prices in the year 2012-13 is estimated at Rs.55,05,437 crore, showing a growth rate of five percent over the first revised estimates of GDP for the year 2011-12 of Rs.52,43,582 crore, CSO data showed.

India’s GDP growth slumped to 6.5 percent in 2011-12, even lower than the 6.7 percent level achieved during the global financial crisis of 2008-09.

The economy had expanded by 8.4 percent in 2010-11. The economy was dragged by weak performance of the mining, manufacturing and agriculture sectors.

The mining sector continued to be weak and reported a deceleration of 0.6 percent; the manufacturing sector grew by a marginal one percent from a growth of 2.7 percent in 2011-12.

The agriculture sector reported a 1.9 percent growth from a faster rate of 3.6 percent in 2011-12.

The 30-scrip sensitive index (Sensex) of the S&P Bombay Stock Exchange (BSE) reacted sharply to the data – the benchmark index fell more than one and a half percent in mid-afternoon trade.

The data furnished by CSO showed that the economy grew by 4.8 percent in the fourth quarter of 2012-13, slipping from the 5.1 percent growth posted in the corresponding quarter last fiscal.

However, the January-March data is a bit higher than the 4.7 percent growth registered in the GDP during the third quarter but is still far lower than 5.2 percent (second quarter) and 5.4 percent (first quarter) growth.

The sluggish growth in the fourth quarter was mainly on account of a mere 1.4 percent growth in the farm sector from two percent in the corresponding quarter the previous fiscal.

The mining sector plunged 3.1 percent during quarter under review from a deceleration of 2.7 percent in the corresponding quarter of 2011-12.

However, manufacturing sector grew by 2.6 percent which was faster than its growth of mere 0.1 percent achieved during the fourth quarter of 2011-12.

Growth rates in various sectors during the fourth quarter of 2012-13 were – agriculture, forestry and fishing 1.4 percent; mining and quarrying -3.1 percent; manufacturing 2.6 percent; electricity, gas and water supply 2.8 percent; construction 4.4 percent; trade, hotels, transport and communication 6.2 percent; financing, insurance, real estate and business services 9.1 percent; and community, social and personal services 4.0 percent.