India Economy Expands 5.7% in Q2

India's GDP advanced faster than expected 5.7 percent in the second quarter of 2014, up from 4.6 percent expansion reported in the first three month of the year. It is the highest growth rate reported since the fourth quarter of 2011.
MOSPI | 8/29/2014 1:46:33 PM
The highest growth rates were reported for: electricity, gas & water supply (10.2 percent); financing, insurance, real estate and business services (10.4 percent) and community, social and personal services (9.1 percent). 

Manufacturing advanced 3.5 percent compared with a contraction of 1.2 percent a year ago. Mining sector grew 2.1 percent compared with a 3.9 percent fall a year earlier. The expansion of farm output growth slowed to 3.8 percent in the quarter, from 4.0 percent a year ago. Trade, hotels, transport and communication rose 2.8 percent.

Construction sector expanded 4.8 percent. The key indicators of construction sector, namely, production of cement and consumption of finished steel registered growth rate of 9.5 percent and 0.7 percent.

Among the services sectors, the key indicators of railways: the net tonne kilometres and passenger kilometres have shown growth rate of 3.3 percent and 5.5 percent respectively. In case of other transport sectors, passengers handled by the civil aviation, cargo handled by the civil aviation and cargo handled at major ports registered growth rates of 7.5 percent and 6.2 percent and 4.3 percent respectively. The sales of commercial vehicles registered the decline of 16.1 percent. Aggregate bank deposits, and bank credits have shown growth rates of 12.4 percent, and 13.3 percent, respectively as against growth of 13.5 percent and 13.5 percent respectively reported in June of 2013.

According to the latest estimates available on the Index of Industrial Production the index of mining, manufacturing and electricity, registered growth rates of 3.2 percent, 3.1 percent and 11.3 percent, respectively as compared to the growth rates of (-) 4.6 percent, (-) 1.1 percent and 3.5 percent in these sectors during the same quarter a year earlier.

India Economy Expands 5.7% in Q2