Overcoming a negative growth in mining sector and a meagre 2 per cent growth in agriculture, the economy continued on its upward trajectory, which was witnessed during the first quarter of the current financial year.
In second quarter, mining sector registered a negative 1.1 per cent growth while electricity, gas and water supply grew by a meagre 3.3 per cent as against 4.7 per cent and 9.1 per cent respectively in the corresponding period a year ago.
The growth in community, social and personal services was higher at 8.0 per cent during July-September 2005 from 6.7 per cent in the year ago period. Construction boom also continued with a 7.4 per cent growth from 4.6 per cent a year ago.
In the first half (April-September) of this fiscal, manufacturing sector grew by 10.2 per cent from 8.8 per cent a year ago but farm sector growth slowed down to 2.0 per cent as against 2.1 per cent in first half last fiscal.
Trade, hotels, transport and communication registered a strong 12.2 per cent growth as against 11.9 per cent while financing, insurance and real estate grew by 9.1 per cent compared to 6.2 per cent in April-September 2004-05.
Growth in mining as well electricity and water supply remained lower at 1.1 per cent and 5.6 per cent during the first half this fiscal compared to 5.8 per cent and 7.6 per cent in the first half last fiscal.
In absolute terms, India's gross domestic product at factor cost was Rs 3,76,878 crore (Rs 3,768.78 billion) during the second quarter of
2005-06 as against Rs 3,48,867 crore (Rs 3,488.67 billion) in the year ago period.
During the first half this fiscal, GDP at factor cost
stood at Rs 7,59,411 crore (Rs 7,594.11 billion) as against Rs 7,02,584 crore (Rs 7,025.84 billion) in April-September 2004-05.
While the real GDP growth at constant prices was 8.1 per cent during the first half, the nominal GDP at current prices expanded by 12.1 per cent during the first half compared to 12.8 per cent last year.
With the release of GDP figures for this quarter, the CSO has also reduced the time-lag in quarterly GDP releases from three months to two months. The first quarter, however, would be an exception where the time-lag would continue to be three months, CSO said.
As per information given by department of agriculture and Cooperation, which has been used in compiling GDP estimates from agriculture in Q2 of 2005-06, rice production is likely to grow by 3.0 per cent and pulses by 0.6 per cent.
Wheat production is, however, expected to decline by 1.0 per cent during the Kharif season of 2005-06 compared to the previous corresponding period.
Among commercial crops, production of oilseeds is likely to decline by 2.5 per cent during Kharif season of 2005-06.
The production of cotton is expected to decrease by 6.5 per cent and that of sugarcane by 10.9 per cent during 2005-06.
According to the latest estimates available on the Index of Industrial Production, the index of mining registered a growth rate of negative 1.7 per cent during the second quarter this fiscal against 5.7 per cent in the previous Q2, while manufacturing grew by 8.6 per cent compared to 9.3 per cent and electricity by 2.1 compared to 5.9 per cent.
The key indicators of construction sector -- cement and finished steel -- registered growth rates of 8.8 per cent and 5.9 per cent, resepectively during Q2 of 2005-06. -- PTI