Published on Mon, Nov 30, 2009 at 12:48 | Source : Moneycontrol.com
Updated at Mon, Nov 30, 2009 at 20:36
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Q2 GDP: How have sectors fared?
India's GDP growth has come as a stunner this quarter. It has comes in way above estimates at 7.9 %. Manufacturing and services sector jumped more than 9%.
India's GDP growth has come as a stunner this quarter. It has comes in way above estimates at 7.9 %. Manufacturing and services sector jumped more than 9%. Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission, says the 6.5% full-year target is likely to be upped.
Industrial growth, which was at best expected at 8.1%, surprised economists by recording 8.3% growth.
Personal consumption expenditure, which looks at the GDP from a demand-side perspective, grew by nearly 6%. The parameter, which in Q1 stood at 1.6%, reflects that the latent retail demand for goods and services is increasing and may fuel growth ahead.
However, government expenditure, which has mainly been driving GDP growth in the previous few quarters, rose by 27%. Whenever the expenditure, which cannot be sustained, is withdrawn, it would take off some sheen from the GDP numbers.
Agriculture growth also stood at 0.9% and the current quarters that would price in this year's drought, may well turn negative.
