Slowdown in the pace of growth of agriculture, mining and manufacturing, led the real GDP growth to moderate further in the third quarter of the current fiscal to 4.5% as compared to 5.3% in the previous quarter and 6% in same quarter last fiscal. Indian economy growing at a worse-than-expected 4.5% came after the Finance Minister P Chidambaram's Budget 2013 speech, which emphasized the need to enhance inclusive growth.
Economic activities which registered significant growth in the third quarter of current fiscal over the same period last fiscal were financing, insurance, real estate and business services at 7.9%, construction at 5.8%, community, social & personal services at 5.4%, trade, hotels, transport and communication at 5.1% and electricity, gas & water supply at 4.5%. On the other hand, growth rate in agriculture, forestry & fishing registered a growth of 1.1%, mining and quarrying declined by 1.4% and manufacturing recorded a growth of 2.5% in this period.
Showing an increase of 12.4%, GDP at factor cost at current prices in Q3 of 2012-13, is estimated at Rs 24,63,775 crore, as against Rs 21,91,132 crore in the same period last fiscal. Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 15,56,374 crore in Q3 of 2012-13 as against Rs 13,71,972 crore in Q3 of 2011-12. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 332777 crore in Q3 of 2012-13 as against Rs 298362 crore in Q3 of 2011-12.
Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs 755,466 crore in Q3 of 2012-13 as against Rs 675,030 crore in Q3 of 2011-12. In terms of GDP at market prices, the rates of GFCF at current and constant (2004-05) prices during Q3 of 2012-13 are estimated at 28.7% and 32.4%, respectively, as against the corresponding rates of 28.8% and 31.8%, respectively in Q3 of 2011-12.
Weak performance of manufacturing, mining and farm sectors pulled down the GDP growth to a decade low in the third quarter, highlighting continuing signs of slowdown and high interest rates. Meanwhile, the Economic Survey 2012-13 has pegged the country's economic growth forecast at 6.1-6.7% in the coming financial year. The survey has painted an optimistic picture for the economy, stating that the downturn is 'more or less over'.
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