New Delhi: India’s growth slowed down in the second quarter (July-September) to 5.3 per cent from 5.7 per cent in the preceding quarter, due to poor show by the manufacturing sector. It presents a daunting challenge for the Narendra Modi government to revive the slowing economy.
India’s GDP growth had accelerated to 5.7 per cent in the first quarter (April to June), and was the fastest growth in the GDP in the last two-and-a-half years. The country had grown at sub-five per cent in the last two fiscal years, the worst performa-nce in the last 25 years.
The manufacturing growth in Q2 slowed down to 0.1 per cent from 3.5 per cent in Q1. The agriculture sector growth came at 3.2 per cent from 3.8 per cent in Q1. The mining sector grew by 1.9 per cent in Q2 against 2.1 per cent in Q1. However the services sector grew faster in Q2 at 7.1 per cent.
The finance ministry said that the growth in Q2 “has been broadly on the expected lines.” The finance ministry said that in view of lower than expected monsoon in the current year against a good monsoon in 2013-14, a lower growth in agriculture sector was expected.
“Similarly, in view of the slower growth of IIP in the second quarter vis-a-vis the first quarter and in particular the manufacturing component; a lower growth in the industry sector vis-a-vis the first quarter is not surprising,” said the finance ministry.
