Saturday, August 30, 2008

The Agriculture Growth Dropped To 3 Per Cent - 3o Aug 08

Finance Minister P Chidambaram has reiterated that GDP growth for this year will be close to the earlier assessment of about 8 per cent. Earlier, the first quarter GDP growth came in at 7.9 per cent, from 9.2 per cent a year earlier, primarily due to a sharp fall in manufacturing activity. The levels of investment and savings remains strong in economy. During the first quarter, the manufacturing growth saw a big decline to 5.6 per cent, from 10.9 per cent a year earlier.

The agriculture growth dropped to 3 per cent, as compared to 4.4 per cent a year earlier. Electricity grew at 2.6 per cent while mining sector grew at 4.8 per cent. On the positive side, construction witnessed a big jump, increasing to 11.4 per cent year-on-year, as compared to 7.7 per cent in the previous fiscal. Deutsche Bank however forecast a further drop in GDP growth this year. We expect GDP growth at 6%-6.5% by year end.

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