Date:02/03/2007 URL: http://www.thehindubusinessline.com/2007/03/02/stories/2007030207960100.htm

Back GDP growth in Q3 slips to 8.6%

Our Bureau

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New Delhi March 1 The GDP growth slowed to 8.6 per cent during the third quarter of the current fiscal compared with a 9.2 per cent increase posted during the second quarter of the current fiscal and a 9.3 per cent growth clocked during the corresponding period of the previous year.

According to the provisional data for the October-December quarter released by the Central Statistical Organisation, the dip in the year-on-year growth rate during the latest reported quarter was mainly on account of a plunge in farm and construction activity.

Farm Growth

Manufacturing rose 10.7 per cent in the third quarter compared with 8.2 per cent a year ago, while farm sector growth declined to a mere 1.5 per cent as against 8.7 per cent in the third quarter of 2005-06. In the services sector, construction growth slowed down to 9.8 per cent from 16.6 per cent, financial services rose by11.6 per cent compared with 9.8 per cent a year ago. Trade, hotels, transport and communication sector witnessed a growth of 13 per cent from 10 per cent a year ago.

Growth in the mining sector stood at 5.7 per cent compared with 2.7 per cent. Electricity, gas and water supply sectors registered a growth of 9.3 per cent compared with 5 per cent in the year-ago quarter.