The growth of Indian economy slowed down at 6.6 per cent in the second quarter (July-September) of 2004-05, from 7.4 per cent in the previous quarter, due to a negative growth in the farm sector.
Agriculture sector registered a negative growth of 0.8 per cent in Q2 compared to 3.4 per cent in Q1, according to quarterly estimates of gross domestic product released by the government on Friday.
The slowdown in the agriculture sector was so pronounced that even the robust performance of the manufacturing sector at 9.3 per cent, up from eight per cent in the first quarter, failed to contain the fall in GDP growth.
The consolidated growth in the first six months (April-September) of 2004-05 stood at seven per cent, marginally up from 6.9 per cent in the same period last year.
Other sectors contributing to the slowdown in the economy were mining, financial, real estate and insurance services.
Mining grew at 4.8 per cent during Q2 compared to 6.1 per cent in Q1 while financial, real estate and insurance services registered a lower growth of 5.9 per cent compared to seven per cent in April-June period.
Construction, considered to be the mainstay of many other sectors like cement and steel, however, registered a positive growth of 5.2 per cent in July-September period against 3.6 per cent in the first quarter of 2004-05.
The GDP at factor cost on constant prices (1993-94), in the second quarter stood at Rs 3,47,308 crore (Rs 3473.08 billion) as against Rs 3,52,119 crore (Rs 3521.19 billion) in the first quarter of 2004-05.
In the first half, the GDP grew to Rs 6,99,427 crore (Rs 6994. 27 billion) from Rs 6,53,699 crore (Rs 6536.99 billion) in the same period last year.
The growth of 6.9 per cent in agriculture in the second quarter of 2003-04 was a tough act to follow in the face of indifferent monsoon this year and the sector settled for negative growth of 0.8 per cent in July-September 04.
Apart from agriculture, sectors like construction, financial services, real estate, business and personal services also showed a negative growth year-on-year.
Construction sector, which was growing at 6.4 per cent in the second quarter of 2003-04, slowed down to 5.2 per cent. Growth of financial services, real estate and allied sectors also fell to 5.9 per cent in July-September 2004 from 6.4 per cent in the same period last year.
Community and social services sector, which grew at 15.4 per cent in the second quarter of 2003-04, slowed down to 4.6 per cent in July-September this fiscal.
The year-on-year growth was, however, maintained by mining, manufacturing, electricity, gas and water supply, trade, hotels, transport and communications.
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