India's GDP grows at 5.7% in June quarter, beats expectations

Buoyed by performance of mining, manufacturing and services sector, Indian economy has bounced back to record a growth rate of 5.7 per cent for the April-June quarter, highest in the past two-and-half years.

India's Gross Domestic Product had expanded by 4.7 per cent April-June quarter of the last fiscal ended March 31.

According to data released here today by the Central Statistics Office (CSO), manufacturing sector recorded a growth of 3.5 per cent in the first quarter of 2014-15 as against a contraction of 1.2 per cent in Q1, 2013-14.

The mining sector too grew by 2.1 per cent in April-June quarter compared a decline in production by 3.9 per cent the year-ago period.

The highest growth rate during Q1, 2014-15 was recorded by financial services sector at 10.4 per cent, followed by electricity gas and water supply at 10.2 per cent.

The previous high of GDP growth rate was recorded at 6 per cent in the October-December quarter of 2011-12. The economic growth in preceding quarter (January-March) was 4.6 per cent.

The construction sector expanded 4.8 per cent in first quarter of this fiscal as against 1.1 per cent growth in the year-ago period.

Growth in the trade, hotels, transport and communications segment also inched up to 2.8 per cent in the first quarter from 1.6 per cent in the same period of 2013-14.

As regard the farm sector which includes agriculture forestry and fishing recorded at deceleration in growth at 3.8 per cent in first quarter compared to 4 per cent a year ago.

Gross Fixed Capital Formation, a barometer of investment at current prices is estimated at Rs 8.14 lakh crore for Q1, as against Rs 7.32 lakh crore a year ago.

At constant (2004-2005) prices, the GFCF is estimated at Rs 4.96 lakh crore in Q1 as against Rs 4.63 lakh crore. 

The production of coarse cereals and pulses registered growth rates of 11.2 per cent and 6.2 per cent during Rabi season of agriculture year 2013-14 (ended June). Rice and wheat also registered a growth of 15 per cent and 2.6 per cent over the production in the corresponding season of previous agriculture year, the press release said.

Among the commercial crops, production of oilseeds increased by 3 per cent.

According to the Index of Industrial Production, mining, manufacturing and electricity, registered growth rates of 3.2 per cent, 3.1 per cent and 11.3 per cent respectively during Q1, 2014-15. The three segments had logged the growth rates of (-)4.6 per cent, (-)1.1 per cent and 3.5 per cent during the same period of 2013-14.

Among the services sectors, the key indicators of railways, namely, the net tonne kilometres and passenger kilometres have shown growth rate of 3.3 per cent and 5.5 per cent respectively during first quarter of the current fiscal.

In case of other transport sectors, passengers handled by the civil aviation, cargo handled by the civil aviation and  cargo handled at major ports registered growth rates of 7.5 per cent and 6.2 per cent and 4.3 per cent respectively, while the sales of commercial vehicles registered the decline of 16.1 percent during first quarter over Q1 of 2013-14.

Aggregate bank deposits and credits have shown growth rates of 12.4 per cent and 13.3 per cent respectively as on June 2014, as against growth of 13.5 per cent and 13.5 per cent respectively as on June 2013.

The Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 16.71 lakh crore in Q1 as against Rs 14.92 lakh crore same quarter last year.

At constant (2004-05) prices, the PFCE is estimated at Rs 9.35 lakh crore in Q1 as against Rs 8.85 lakh crore in same period a year ago.

Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 3.81 lakh crore in Q1 as against Rs 3.29 lakh crore in same quarter last fiscal.

At constant (2004-2005) prices, the GFCE is estimated at Rs 1.87 lakh crore in Q1 as against Rs 1.72 lakh crore same priod of 2013-14.