Economic growth dips to 5.3% in Q4; lowest in 9 yrs

India's economic growth rate slipped to 5.3% in the fourth quarter of 2011-12, lowest in nearly 9 years due to poor performance of the manufacturing and farm sectors.

The Gross domestic product (GDP) growth in the January- March quarter of 2010-11 was 9.2%, according to the government data released today. GDP in 2011-12 also moderated to 6.5% from 8.4% in the 2010-11.

During the quarter ending March 31, growth in the manufacturing sector contracted to 0.3%, from 7.3% in the corresponding period of 2010-11. Farm output also exhibited a similar trend and expanded by just 1.7% during the quarter, compared to 7.5% in the Q4, 2010-11.

However, mining and quarrying production growth stood at 4.3 cent during the quarter under review, as against a growth of meagre 0.6% in Q4 of in 2010-11.

Growth in the construction sector slowed to 4.8% during the January-March quarter of 2011-12, from 8.9% in the year-ago period. The trade, hotels, transport and communications segment grew by 7% during in the quarter under review, as against 11.6% expansion in the year-ago period.

However, electricity, gas and water supply grew by 4.9% in the January-March period, compared to 5.1% growth in the corresponding period last fiscal. The growth of the services sector, including insurance and real estate remained unchanged at 10% in the fourth quarter ended March.

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