India GDP Growth Disappoints


The Indian economy expanded 7 percent year-on-year in the second quarter of 2015, slowing from a 7.5 percent growth in the previous period and below market expectations of 7.4 percent. While services and manufacturing grew at a slower pace; mining and construction accelerated and agriculture reported expansion.

On the production side: trade, hotel, transport and communication recorded the biggest expansion (12.8 percent, 14.1 percent in Q1), followed by finance, real estate and insurance (8.9 percent, 10.2 percent in Q1); manufacturing (7.2 percent, 8.4 percent in Q1) and construction (6.9 percent, 1.4 percent in Q1). The mining sector grew 4 percent (2.3 percent in Q1); electricity, water and gas supply went up 3.2 percent (4.2 percent in Q1); public administration and defense increased 2.7 percent (0.1 percent in Q1) and farming output gained 1.9 percent (-1.4 percent). 

The most important and the fastest growing sector of Indian economy are services. Trade, hotels, transport and communication; financing, insurance, real estate and business services and community, social and personal services account for more than 60 percent of GDP. Agriculture, forestry and fishing constitute around 12 percent of the output, but employs more than 50 percent of the labor force. Manufacturing accounts for 15 percent of GDP, construction for another 8 percent and mining, quarrying, electricity, gas and water supply for the remaining 5 percent. 

India GDP Growth Disappoints


Joana Taborda | joana.taborda@tradingeconomics.com
8/31/2015 2:07:35 PM