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Growth rate 8.6 per cent in Jan-Mar quarter
2 June 2010: The Indian economy roared past estimates to post a whopping growth rate of 8.6 per cent in the January-March quarter of 2010.
The quarter's strong showing also helped India end the fiscal year with 7.4 per cent growth, beating the earlier estimate of 7.2 per cent. Manufacturing led the way, with a whopping 16.3 per cent growth in the quarter and 10.8 per cent overall, while even agriculture, which was expected to decline, ended with marginal growth of 0.2 per cent year-on-year after growing 0.7 per cent in Q4.
The GDP growth rate had slowed to 6.7 per cent in 2008-09 following the global economic crisis, after topping 9 per cent in the previous three years.
The first quarter growth in the gross domestic product (GDP) is better than expected. In February, the Central Statistical Organisation (CSO) had estimated that the Indian economy would grow at 7.2 per cent in 2009-10, with growth of 7.7 per cent in the fourth quarter. But the unexpectedly strong performance in the fourth quarter helped boost the final figure to 7.4 per cent.
The fourth-quarter showing is particularly commendable in the light of a sudden dip in the third quarter to 6.5 per cent from 8.6 per cent in the second quarter due to the impact of a drought-like situation in the country.
In the backdrop of the slow recovery in the global economy, the strong growth is a testimony to its vibrant domestic markets. The main driver is the manufacturing sector, which grew at 16.3 per cent in the fourth quarter, against 0.6 per cent. The 7.4 per cent growth in 2009-10 also showed that stimulus provided by government have yielded results. The manufacturing sector, which bore the brunt of slowdown and had grown 3.8 per cent in 2008-09, bounced back and posted 10.8 per cent growth in 2009-10.
Source: Economic Times