Indian economy grows at 5.8% in Q2

In spite of a zero growth in agriculture sector, the Indian economy grew at an impressive 5.8 per cent in the second quarter of 2002-03 compared to 5.3 per cent in the same period last year.

Other than agriculture and electricity, all other sectors including manufacturing, trade and hotels and finance posted higher growth rates in July-September this fiscal when compared to the growths in the same quarter last year.

As per data released by the Central Statistical Organisation, agriculture witnessed zero per cent growth during the period, compared to 6.3 per cent last year, while the manufacturing sector registered a growth rate of 6.4 per cent compared to 2.6 per cent in the second quarter of last year.

The sectors which registered significant growth in the quarter July-September over the previous year included mining and quarrying which grew at 5.1 per cent, manufacturing at 6.4 per cent, and construction at 7.2 per cent.

Other such sectors included trade, hotels, transport and communication at 8 per cent, financing, insurance, real estate and business service at 8.9 per cent and community, social and personal service at 5.7 per cent.

The agriculture growth rate has been estimated at zero per cent while electricity, gas and water supply grew at 4.9 per cent in the second quarter compared to 5.4 per cent in the corresponding period last year.

According to information furnished by the department of agriculture and co-operation on the likely production of crops during the kharif season of 2002-03, which has been used in compiling estimates of GDP, the production of rice, coarse grains and pulses has fallen by 15.8, 27.8 and 16.7 per cent, respectively, over the previous kharif season.

Amongst commercial crops, production of oil seeds is expected to decline by 25.1 per cent, while production of cotton and sugarcane is expected to fall by 22.3 per cent and 5.4 per cent, respectively, during 2002-03 over their estimated production in the previous year.

GDP at factor cost at current prices in the second quarter has been estimated at Rs 5,04,563 crore (Rs 5,045.63 billion) compared to Rs 4,63,367 crore (Rs 4,633.67 billion) in the second quarter of the previous year, an increase of 8.9 per cent.

In value terms the GDP at factor cost in the second quarter has been estimated at Rs 2,98,308 crore (Rs 2,983.08 billion) against Rs 2,82,084 crore (Rs 2,820.84 billion) of the same period last year.