India's FY'11 GDP growth pegged at 8.5 per cent
31 May 2011
The Indian economy is estimated to have grown at a slower 8.5 per cent in the 2010-11 financial year against the projected growth of 8.6 per cent for the year. This has been due mainly to a slowing of the economy in the final quarter of the 2010-11 fiscal.
Gross domestic product (GDP) of the country at factor cost at constant (2004-05) prices is now estimated to have grown at 8.5 per cent to Rs48,77,842 crore in 2010-11 against Rs48,79,232 crore in the advance estimates (of 7 February 2011), which showed a growth rate of 8.6 per cent over the quick estimates of GDP for the year 2009-10 of Rs44, 93,743 crore.
GDP at factor cost at constant (2004-05) prices is estimated to have grown at 7.8 per cent to Rs13,17,554 crore, against Rs12,22,573 crore in the fourth quarter of 2009-10.
The sectors which registered significant growth rates in Q4 2010-11 are 'agriculture, forestry and fishing' at 7.5 per cent 'electricity, gas and water supply' at 7.8 per cent, 'construction' at 8.2 per cent, 'trade, hotels, transport and communication' at 9.3 per cent, and 'financing, insurance, real estate and business services' at 9.0 per cent.
GDP at factor cost at current prices in Q4 of 2010-11 is estimated to have grown 17.2 per cent to Rs20,12,528 crore from Rs17,16,675 crore in Q4 of 2009-10.
The Central Statistics Office (CSO) attributed the downward revision in the GDP growth rate to lower growth in the sectors such as `mining and quarrying', `manufacturing', `trade, hotels, transport, and communication' and 'financing, insurance, real estate and business services'.
In the agriculture sector, however, the third advance estimates of crop production released by the ministry of agriculture showed an upward revision as compared to their second advance estimates.
