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New Delhi: There has been marginal improvement in the economic growth during the first quarter (April-June) of the current fiscal. The GDP growth for Q1, 2012-13 has been 5.5 per cent compared to 5.3 per cent in the January-March (Q4) quarter, 2011-12. The comparative figure in Q1 of 2011-12 was 8 per cent.
For the year, growth dropped to a three-year low of 6.5 per cent against 7.8 per cent last year. The bright spot if agriculture sector where the output rose to 2.9 per cent against 1.7 per cent in Q4 of 2011-12. The growth rate of electricity, gas and water supply also dipped to 6.3 per cent in Q1, from 8 per cent in the corresponding period last fiscal. Mining and quarrying sector recorded a growth of 0.1 per cent during the quarter under review, as against a contraction of 0.2 per cent in Q1 of 2011-12.
The trade, hotels, transport and communications segment also witnessed lower pace of growth at 4 per cent compared to 13.8 per cent expansion in the same quarter year-ago period.
However, the growth in the construction sector was robust at 10.9 per cent during Q1 of 2012-13, as against 3.5 per cent in the year-ago period.
Growth rate of services sector, including insurance and real estate, also improved to 10.8 per cent in the first quarter, from 9.4 per cent recorded in April-June quarter last fiscal.
While the GDP is yet to show signs of registering high growth, what is worrying is that the latest data on household savings for the financial year 2011-12 show that net financial savings fell to the lowest in 22 years to 7.8 per cent of the GDP.
Experts say lower savings will put pressure on domestic resources and could drag growth for a prolonged period since saving and investment trends don't change quickly. Business houses, however, are pinning hopes on the government to revive the investment cycle.
With Additional Inputs from PTI
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