India's economy grows 4.7% in 2013-14 fiscal

India's gross domestic product (GDP) expanded 4.7 per cent in the financial year ended 31 March 2014, extending a sub-5 per cent economic growth to the second consecutive year, hit by the worst slowdown in more than a quarter of a century.

The growth rate was below the earlier estimated 4.9 per cent annual GDP growth and moderately higher than the 4.5 per cent growth recorded in the previous fiscal year.

GDP at factor cost at constant (2004-05) prices for the financial year 2013-14 is now estimated at Rs57,42,000 crore (Rs57,49,000 crore estimated earlier on 7 February 2014), showing a growth rate of 4.7 per cent (4.9 per cent estimated earlier) compared to the revised estimates of GDP of Rs54,82,000 crore for the year 2012-13.

For the quarter ended 31 March 2014, India's GDP expanded 4.6 per cent year-on-year to Rs15,38,000 crore, compared to Rs14,71,000 crore in Q4 of 2012-13, provisional estimates of national income for 2013-14 released today showed.

The moderation in GDP growth has been due mainly to a 1.4 per cent contraction in manufacturing activity during the fourth quarter of the financial year. Farm output, however, rose 6.3 per cent during the quarter, data showed.

Growth in the manufacturing sector is now estimated to have declined to - 0.7 per cent, against the advance estimate of growth of - 0.2 per cent.

Production in the farm sector comprising 'agriculture, forestry and fishing' showed a growth of 4.7 per cent in 2013-14 against the 4.6 per cent growth rate projected in the advance estimates.

The growth of 'mining and quarrying' is now estimated at - 1.4 per cent, against the advance estimate of - 1.9 per cent.

Growth in the construction sector is estimated to have declined slightly to 1.6 per cent from the advance estimates of 1.7 per cent.

The combined effect was a decline in GDP growth from the earlier projected level.

The key indicators of banking, namely, aggregate bank deposits and bank credits have shown growth rates of 14.6 per cent and 14.3 per cent, respectively, during 2013-14.

The fiscal deficit during the 2013-14 fiscal year, as of end-March 2014 was Rs5,08,000 crore ($86.08 billion), or equivalent to 4.5 per cent of the country's gross domestic product, data showed.

The deficit is lower than the downwardly revised estimate of 4.6 per cent and the 4.9 per cent deficit during the year earlier.

Gross tax receipts of the government during the 2013-14 fiscal stood at Rs8,16,000 crore against total expenditure of Rs15,60,000 crore, data showed.