India's GDP growth falls to 5.8 per cent in Q4 FY09

Economic growth of the country measured by gross domestic product (GDP) declined to 5.8 per cent for the fourth quarter of fiscal 2008-09 (January-March 2009) and to 6.7 per cent for the entire fiscal, pulled down by declining growth in almost all sectors and the manufacturing sector in particular.

Manufacturing output in the country dipped 1.4 per cent against an increase of 6.3 per cent in the corresponding period a year ago during the fourth quarter (January 2009-March 2009) under the weight of the global financial crisis, data released by the Central Statical Organisation (CSO) showed.

Industrial production growth decelerated sharply to 2.4 per cent for the entire fiscal (2008-09) from 8.2 per cent in the previous fiscal. India recorded a GDP growth rate of 9 per cent during 2007-08. GDP growth declined to 8.6 per cent in the fourth quarter of 2007-08.

Revised estimates by the CSO puts GDP at factor cost at constant (1999-2000) prices in the fourth quarter of 2008-09 at Rs9,02,924 crore, as against Rs8,53,785 crore in the same quarter of the previous fiscal (2007-08), showing a growth rate of 5.8 per cent.

The CSO, in its advance estimates, had projected a growth rate of 7.1 per cent.

The sectors which registered significant growth rates in Q4 of 2008-09 are construction (6.8 per cent), trade, hotels, transport and communication (6.3 per cent), financing, insurance, real estate and business services (9.5 per cent) and community, social and personal services (12.5 per cent).

The private final consumption figure (PFCE) and government final consumption figure (GFCF) at constant (1999-2000) market prices in Q4 of 2008-09 are estimated at Rs5,04,342 crore and Rs3,10,576 crore, respectively. The rates of PFCE and GFCF as percentage of GDP at market prices in Q4 of 2008-09 were 51.4 per cent and 31.6 per cent, respectively, as against the corresponding rates of 52.1 per cent and 31.0 per cent, respectively in Q4 of 2007-08.

GDP at factor cost at current prices in Q4 of 2008-09 is estimated at Rs12,89,616 crore, as against Rs11,94,578 crore in Q4 of 2007-08, showing a rise of 8.0 per cent.

The PFCE and GFCF at current market prices in Q4 of 2008-09 are estimated at Rs7,49,639 crore and Rs4,84,263 crore, respectively. The rates of PFCE and GFCF at current prices as percentage of GDP at market prices in Q4 of 2008-09 are estimated at 53.8 per cent and 34.8 per cent, respectively, as against the corresponding rates of 50.4 per cent and 33.4 per cent, respectively in Q4 of 2007-08.

Gross domestic product (GDP) at factor cost at constant (1999-2000) prices in the year 2008-09 is now estimated at Rs33,39,375 crore (as against Rs33,51,653 crore estimated earlier on 9 February 2009, showing a growth rate of 6.7 per cent (as against 7.1 per cent in the advance estimates) over the quick estimates of GDP for the year 2007-08 of Rs31,29,717 crore, released on 30 January 2009. The downward revision in the GDP growth rate is mainly on account of lower performance in almost all the sectors excluding 'construction' and 'community, social and personal services' than anticipated.

The sectors which showed growth rates of 5 per cent or more, are 'construction' (7.2 per cent), 'trade, hotels, transport and  communication' (9.0 per cent), 'financing, insurance, real estate and business services' (7.8 per cent), and 'community, social and personal services' (13.1 per cent).

GDP at factor cost at current prices in the year 2008-09 is estimated at Rs49,33,183 crore, showing a growth rate of 14.2 per cent over the quick estimates of GDP for the year 2007-08 of Rs43,20,892 crore, released on 30 January 2009.

Net national product (NNP) of the country at factor cost (also known as national income), at constant (1999-2000) prices rose 6.4 per cent to Rs29,41,971 crore (Rs29,61,249 crore estimated earlier), during 2008-09, as against the previous year's quick estimate of Rs27,64,795 crore, revised estimates by the Central Statistical Organisation showed.

India's national income grew at 9.1 per cent in 2007-08.

The country's per capita income in real terms (at 1999-2000 prices) grew at 4.9 per cent to Rs25,494 (as against Rs25,661 estimated on 9 February 2009), as compared to the quick estimates of Rs24,295 for the fiscal 2007-08, as per revised estimates.

NNP at factor cost at current prices is now estimated at Rs43,26,384 crore during 2008-09, as compared to Rs37,87,597 crore during 2007-08, showing a rise of 14.2 per cent.

Per capita income at current prices during 2008-09 is estimated to attain a level of Rs37,490 as compared to the quick estimates for the year 2007-08 of Rs33,283, showing a rise of 12.6 per cent.