(RTTNews) - Friday, the Ministry of Statistics and Programme Implementation, Government of India, has reported the estimated growth rate of Gross Domestic Product for the first quarter at 7.9%, down from 8.8% recorded in the previous quarter and slowed down from 9.2% in the year-ago quarter. In terms of value, the quarterly GDP at factor cost at constant prices is estimated at Rs.7,82,357 crores, compared to Rs.7,24,949 crores in the first quarter prior year.

GDP growth slipped below the 8% mark after nine quarters. The drop in growth during the quarter was attributed to rise in inflation, coupled with high interest rates and input costs.

During the quarter, the ‘construction’ witnessed considerable growth at 11.4%, compared to 7.7% in the previous year quarter, followed by ‘mining & quarrying’ at 4.8%, compared to 1.7% in the year-ago quarter and ‘community, social & personal services’ registering a growth of 8.4%, up from 5.2% in the prior year quarter. However, the growth rate in ‘agriculture, forestry & fishing slid to 3% from 4.4% in Q1 2007-08, while manufacturing growth almost halved to 5.6% from 10.9%, as rising interest rates impacted their expansion.

The other sectors, which witnessed considerable slow in growth rate, are ‘electricity, gas and water supply’ at 2.6%, compared to 7.9% in the prior year quarter and ‘financing, insurance, real estate & bus services’ at 9.3%, compared to 12.6% in the prior year quarter.. In the services sector, trade, hotels, transport & communication, the growth rate was 11.2%, down from 13.1% in the previous year quarter.

As per information furnished by the Department of Agriculture and Cooperation, which compiles the estimate of GDP from agriculture in Q1 of 2008-09, the growth of crop rice during the Rabi season (which ended in June 2008) of 2007-08 recorded a growth rate of 3.3%, while that of wheat and coarse cereals recorded growth rates of 3.4% and 8.6% respectively over the corresponding season in the previous agriculture year. On the other hand, the production of pulses witnesses a negative growth of 7.9%, compared to corresponding season of previous agriculture year. Among the commercial crops, the production of oil seeds declined by 12.6% during the rabi season of 2007-08, while the production of cotton recorded growth rate of 14.0% and sugarcane showed a negative growth of 4.2% during the agriculture year 2007-08.

As per the latest estimates available on the Index of Industrial Production, the index of mining, manufacturing and electricity registered growth rates of 4.7%, 5.6% and 2.0% respectively during the first quarter of 2009, compared to the growth rate of 2.7%, 11.1% and 8.3% in these sectors during Q1 of 2007-08. The key indicators of construction sector, namely, cement and finished steel registered growth rates of 5.8% and 4.5% respectively during first quarter, compared to the growth rates of 7.2% and 5.4% respectively in Q1 of 2007-08.

As far as service sectors is concerned, in railways, the net tonne kilometers and passenger kilometers have shown growth rates of 9.3% and 7.0% respectively during Q1 of 2008-09, while in transport and communication sectors, the production of commercial vehicles registered growth rate of 9.1%, cargo handled at major ports at 8.8%, cargo handled by the civil aviation at 8.3%, passengers handled by the civil aviation at 4.4% and the total stock of telephone connections registered a growth rate of 44.8%.

GDP at factor cost at current prices during the first quarter is estimated at Rs. 11,52,530 crores, compared to Rs.9,90,868 crores in the first quarter of 2007-08, representing an increase of 16.3%.

The wholesale price index, in respect of the groups, food articles, fish, minerals, manufactured products, electricity and all commodities, during the first quarter rose 5.8%, 1.5%, 46%, 9%, 1.4% and 9.4% respectively over the first quarter of 2008. The consumer price index for industrial workers increased 7.7% during Q1 of 2008-09 over Q1 of 2007-08.

The expenditure analysis of GDP revealed that the private final consumption expenditure or PFCE at constant price for the first quarter is estimated at Rs.4,97,043 crores, compared to Rs.4,60,272 crores in Q1 of 2007-08. In terms of GDP at market prices, the rates of PFCE at constant price is estimated at 59.8%, while government final consumption expenditure estimated at 10.3% and gross fixed capital formation at 32.3%. Inventories are estimated flat at 2.1%, while exports were estimated to be up at 26.3%.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Economy, Forex, Releases, Stocks.

Subscribe by RSS Subscribe by Email