Economy bounces back to record 5.7% growth, highest in over two years.

published on August 29, 2014

NEW DELHI: Buoyed by performance of mining, manufacturing and services sector, Indian economy has bounced back to record a growth rate of 5.7 per cent for the April- June quarter, highest in the past two-and-half years.

India’s gross domestic product had expanded by 4.7 per cent April-June quarter of the last fiscal ended March 31.

According to data released here on Friday by the Central Statistics Office (CSO), manufacturing sector recorded a growth of 3.5 per cent in the first quarter of 2014-15 as against a contraction of 1.2 per cent in Q1, 2013-14.

The mining sector too grew by 2.1 per cent in April-June quarter compared a decline in production by 3.9 per cent the year-ago period.

The highest growth rate during Q1, 2014-15 was recorded by financial services sector at 10.4 per cent, followed by electricity gas and water supply at 10.2 per cent.

The previous high of GDP growth rate was recorded at 6 per cent in the October-December quarter of 2011-12. The economic growth in preceding quarter (January-March) was 4.6 per cent.

The construction sector expanded 4.8 per cent in first quarter of this fiscal as against 1.1 per cent growth in the year-ago period.

Growth in the trade, hotels, transport and communications segment also inched up to 2.8 per cent in the first quarter from 1.6 per cent in the same period of 2013-14.

As regard the farm sector which includes agriculture forestry and fishing recorded at deceleration in growth at 3.8 per cent in first quarter compared to 4 per cent a year ago.

Gross Fixed Capital Formation, a barometer of investment at current prices is estimated at Rs 8.14 lakh crore for Q1, as against Rs 7.32 lakh crore a year ago.

At constant (2004-2005) prices, the GFCF is estimated at Rs 4.96 lakh crore in Q1 as against Rs 4.63 lakh crore.

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