The gross domestic product (GDP) recorded a 5.3 per cent growth in the second quarter of 2001-02, as compared to a 6.2 per cent growth in the corresponding period last year.
The growth in the second quarter, however, was much better than the 4.4 per cent reported for the first quarter this year. The GDP growth for the first half of the year was 4.85 per cent, but it could still cross 5.5 per cent for the whole year, expect economists. Growth is expected to pick up in the last two quarters, mainly due to the low base of last year's third and fourth quarter growth rates.
The fall in the growth rate between the second quarter last year and this year was mainly on account of a sharp slowdown in the manufacturing and construction sectors. Quarterly GDP at factor cost at constant (1993-94) prices rose to Rs 2,83,599 crore as against Rs 2,69,241 crore in the second quarter of 2000-01. The manufacturing sector, which grew by 6 per cent between July-September last year reported a growth of only 2.3 per cent in the second quarter this year. Similarly, construction, which grew at 8.4 per cent last year, reported a growth of only 4.1 per cent this time. Agriculture, however, did much better, growing by 3.4 per cent as compared to 0.5 per cent in the second quarter in 2000-01.
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Mining also recorded a sharp drop in growth, down from 3.8 per cent in the second quarter of last year to 0.6 per cent this year. Electricity, gas and water supply grew by 4.8 per cent, up from 3 per cent between July-September last year. Financing, insurance, real estate and business services grew by 11 per cent in the second quarter this year, as compared to a 9.8 per cent growth in the same period last year. Community, social and personal services grew by 6.1 per cent as against 9.3 per cent growth last year.
Trade, hotels, transport and communication grew by 6.2 per cent, lower than the 7.3 per cent growth in the second quarter of last year, but better than the 5.2 per cent growth in the first quarter this fiscal.
According to the information furnished by the department of agriculture and cooperation, the production of rice and pulses has risen by 2.7 per cent and 12.2 per cent respectively. Production of coarse cereals has, however, declined by 0.4 per cent during the Kharif season of 2001-02. This data has been used in compiling the estimates of GDP from agriculture in the second quarter of 2001-02.
Oilseed production has gone up by 8.3 per cent, while production of cotton is expected to go up by 31 per cent. Sugarcane production will, however, be 6.8 per cent lower than its production during 2000-01.
According to the latest estimates on the Index of Industrial Production, the indices of mining, manufacturing and electricity grew by 0.6 per cent, 2.3 per cent and 4 per cent respectively during the second quarter of 2001-02.
The key indicators of construction sector, cement and steel registered growth rates of 6.3 per cent and 1.8 per cent respectively during the second quarter of 2001-02.
These sectors had grown by 2.5 per cent and 9.1 per cent during the second quarter of 2000-01.
The key indicators of railways -- net tonne kilometres and passenger kilometres -- have shown growth rates of 2.6 per cent and 13.1 per cent in the second quarter this year.
While production of commercial vehicles fell by 6.2 per cent, cargo handled at major ports, aggregate bank deposits, bank credits and revenue expenditure of the central government have shown growth rates of 4.9 per cent, 17.6 per cent, 12.7 per cent and 9.5 per cent, respectively, during the second quarter of 2001-02.
At current prices, GDP at factor cost rose by 10 per cent to Rs 4,77,785 crore.