6.1% growth in third quarter disappointing: Indian FM

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March 1, 2012

Finance Minister Pranab Mukherjee termed the third quarter GDP number of 6.1 percent as "disappointing" but expressed the hope that economy is expected to register a growth of 7 percent for the entire fiscal. "No doubt, it is disappointing 6.1 percent… but not unexpected," he said.

March 1, 2012

Finance Minister Pranab Mukherjee termed the third quarter GDP number of 6.1 percent as "disappointing" but expressed the hope that economy is expected to register a growth of 7 percent for the entire fiscal. "No doubt, it is disappointing 6.1 percent… but not unexpected," he said.

"If, I take first quarter, second quarter, third quarter taken together, it is also indicating a downward trend," he said. "But as you know that the CSO has given the full advance estimates that is around 6.9 percent, we also expect it around 6.9 or 7 percent," he said. Impacted by high interest rates and global demand slowdown, Indian economy grew at 6.1 percent, the slowest in over two years, prompting corporates and experts to press for faster reforms to boost industrial output.

 The economic growth rate in October-December 2011 declined mainly due to poor performance of manufacturing, mining and farm sectors. The economy had expanded by 8.3 percent during the corresponding quarter a year ago. The falling growth rate may prompt the Reserve Bank to cut rates at its mid-quarterly policy review on March 15. The Finance Minister too is expected to announce steps to arrest contraction in growth in the Budget for 2012-13, to be presented in the Lok Sabha on March 16.

 According to the data released by Central Statistical Organization (CSO), growth of the manufacturing sector during the quarter decelerated sharply to 0.4 percent from 7.8 percent during the same period a year ago. Farm sector output registered a growth 2.7 percent, down from 11 percent in Q3 of the last fiscal.


Courtesy: ANI