India's GDP grows 8.9 per cent in July-September 2010

The Indian economy expanded at better than expected pace of 8.9 per cent in the second quarter of the current fiscal (July-September 2010-11), helped by strong performance of the farm and service sectors.

India also remained the second fastest growing economy after China, which recorded a 9.6 per cent growth in the July-September quarter.

The Central Statistical Organisation (CSO) also raised the GDP growth of fiscal first quarter (April-June) to 8.9 per cent, from 8.8 per cent earlier.

The revision is on account of the new base year adopted in the calculation of inflation and industrial output.
 
The CSO estimates gross domestic product (GDP) at factor cost at constant (2004-05) prices for Q2 of 2010-11 at Rs11,46,637 crore against Rs10,53,057 crore in Q2 of 2009-10, an year-on-year growth of 8.9 per cent.

Among industries, the higher growth rate has been made possible by better performance in mining and quarrying (8.0 per cent), manufacturing (9.8 per cent), construction (8.8 per cent), trade, hotels, transport and communication (12.1 per cent), finance, insurance, real estate and business services (8.3 per cent), and community, social and personal services (7.3 per cent).

CSO has estimated the growth rate in agriculture, forestry and fishing at 4.4 per cent during the quarter.