Economic growth slows to 6.1 per cent in Q3

The Indian economy grew at a slower pace of 6.1 per cent in the third quarter of the current financial year (October-December 2011-12) on the back of poor performance by the manufacturing and mining sectors.

The 6.1 per cent growth has been made possible by improvements in power generation and better performance of transport and communication, finance, insurance, real estate and business services.

Gross domestic product (GDP) of the country at factor cost at constant (2004-05) prices rose to Rs13,39,603 crore during October-December 2011-12 against Rs12,62,794 crore in October-December 2010-11, showing a growth rate of 6.1 per cent year-on-year, figures released by the Central Statistical Office (CSO) showed.

The CSO has revised the quarterly estimates and growth rates for 2010-11 on the basis of revised annual estimates of 2009-10 and 2010-11 following the shift to the new series of the index of industrial production (IIP). These changes have also resulted in the inclusion of estimates of 'trade, hotels and restaurants' sector, CSO said in its release.

During the quarter, the following sectors have shown significant growth:

•  Electricity, gas and water supply - 9.0 per cent 
• Construction - 7.2 per cent
• Trade, hotels, transport and communication - 9.2 per cent
• Finance, insurance, real estate and business services - 9.0 per cent
• Community, social and personal services - 7.9 per cent
• Agriculture, forestry and fishing – 2.7 per cent
• Mining and quarrying –3.1 per cent
• Manufacturing – 0.4 per cent

According to the second advance estimates of production of crops released on 3 February 2012, production of coarse cereals and pulses during the kharif season of 2011-12 is estimated to have declined by 4.6 per cent and 10.3 per cent, respectively, while rice production increased by 11.8 per cent over the corresponding season in the previous agriculture year.