Indian economy grew 5.3 per cent in Q2-FY’13

India's gross domestic product (GDP) is estimated to have grown at a slow pace of 5.3 per cent in the second quarter of the current financial year (July-September 2012-13), against a 6.7 per cent growth recorded in Q2 of 2011-12, official data released today showed.

GDP at factor cost at constant (2004-05) prices rose to Rs12,93,922 crore at the end of the July-September 2012-13 quarter from Rs12,28,982 crore during the similar quarter of the 2011-12 fiscal, quick estimates provided by the Central Statistics Office (CSO) showed.

This is also a little lower than the growth rate of 5.5 per cent achieved in the first quarter of the current fiscal, but at the same level as achieved in Q4 of 2011-12.

GDP growth rate for the first half (H1) of the current financial year works out to 5.4 per cent against 7.3 per cent in the H1 of 2011-12. Overall, the growth rate is below our expectations, a finance ministry release said.

At the sectoral level, agriculture and allied services grew 1.2 per cent, industrial production at 2.8 per cent and the service sector at 7.2 per cent during Q2 of the current fiscal against growth rates of 3.1 per cent, 3.7 per cent and 8.8 per cent, respectively, in Q2 of 2011-12.

The finance ministry attributes the reduction in growth in agriculture and allied sectors to lower than normal rainfall, particularly in June-July, which impacted khariff crop, pulling down overall growth rate.