GDP growth slips to 7.6%

Dispelling fears of a major slowdown, the Indian economy grew by 7.6 per cent in the second quarter of current fiscal due to decent performance by the construction and services sectors, though the growth is moderate compared with 9.3 per cent in the year-ago period. For the first half of this fiscal, the economy, measured as Gross Domestic Product (GDP), rose by 7.8 per cent compared with 9.3 per cent a year ago, an official release said today. The government has been projecting the economy to grow between 7-8 per cent this fiscal, while Reserve Bank's projection ranges from 7.5-8 per cent. While agriculture and allied sectors growth slipped to 2.7 per cent in the second quarter from 4.7 per cent a year ago, mining and quarrying could post a growth of 3.9 per cent compared with 5.5 per cent. Manufacturing sector, however, show a marked deceleration recording a growth of five per cent, down from a high of 9.2 per cent in the second quarter of previous fiscal. Electricity generation and related sectors, too, recorded a modest growth of 3.6 per cent compared with 6.9 per cent in the year-ago period. Among those sectors which performed well, construction sector grew by 9.7 per cent in the second quarter, even though it was down from 11.8 per cent in the corresponding period last fiscal. In services group, trade, hotels, transport and communication rose at the rate of 10.8 per cent, marginally down from 11 per cent in the second quarter last fiscal. Even the financial and related sectors recorded a growth of 9.2 per cent, compared with 12.4 per cent, while growth in the community, social and personal services remained more or less at the same level.