Growth for FY12 fell to its 9Yr low of 6.5% against 8.4% in FY11
GDP growth stood at 5.3% in Q4FY12 against expectations of 6.1%
GDP growth for Q4FY12 stood at 5.3% reflecting a declining trend over the past 4 consecutive quarters. For the full fiscal year FY12, growth stood at 6.5%, which was the lowest in past 9 years, including the period of global financial crisis (2008-09).
Growth in Q4 was primarily led by services sector which grew by 7.9%. Mining sector,which has been reporting contraction over the past three consecutive quarters,has shown a recovery by growing at 4.3% in Q4. Major decrease in GDP growth this quarter was reported by manufacturing sector which de-grew by 0.3%.
For the full fiscal year FY12, growth rate dropped to 6.5%. Services sector contributed the most towards this growth rate followed by Electricity and Construction. Services sector grew by 8.9% and constituted 59.0% ofIndia’s GDP in FY12. Comparatively, Manufacturing sector grew by 2.5% and constituted 15.3% of India’s GDP in FY12. Agriculture formed 14.0% of India’s GDP and has grown by 2.1% in FY12.
On expenditure side,government consumption expenditure increased from 30.3% to30.9% of GDP. Inspite of this increase in Govt. expenditure and lower than expected GDP numbers, GOI has reported a decline in fiscal deficit against the revised budget estimates. Fiscal deficit stood at 5.75% of GDP against the revised estimates of 5.9% in FY12.
The announcement of this GDP number was followed by the core sector growth data for Apr’12. Core sector growth remained flat at 2.2% in Apr’12 on MoM basis. This may have an adverse impact IIP growth ahead. Overall, the contraction in GDP and industrial production followed by the fragile global macroeconomic situation are hurting investor sentiments. Any rate cut measure in the upcoming monetary policy on 18th June may boost investor sentiments. However, inflation continues to be a major roadblock which may hinder RBI’s rate cut measures.
Click here to read the full reportWorld News
Other Articles
- IIP grows at 2% for April 2013, below market expectations of ~2.4%
- IIP for the month of March 2013 stood at 192.3, up 2.5% YoY
- IIP up at 2.5% for March 2013, slightly above market expectations
- IIP grows 0.6% in February'13
- IIP grows by 0.6% in Feb'13 against expectations of -1.0%
Featured Author
 |
Punit Jain |
- Macroeconomic indicators & Stock markets
- Midcap/Smallcap Indices - Time to catch up and stop under performing?
- MF Scheme Analysis: Franklin India Bluechip Fund (G)
- Note on RBI's Monetary Policy Announcement for 2013-14
- South Indian Bank Q3FY13: Results in line with expectations, retain accumulate More
Also On IndiaNotes.Com
Personal Finance
Can I get my EPF related grievances addressed?8 steps to financial planningHow to choose the best Credit CardStock Recommendation
Bharat Electronics: Buy for a price target of Rs1422Blue Star: Recommends a dividend of Rs2.00/share, maintain buyHavells India: Well-fortified stance, but headwinds increasingMarket Outlook
Week ahead: Nifty surging higher, the bulls remain in controlDow Theory: A tool for technical analystsEquity markets witnessed a choppy session of trade
Reader's Comments
Discussion
18th Jun 2013 | 11:00 am
Economy : Evening trading Level || intraday commodity tips
11th Jun 2013 | 08:37 am
Economy : 7 days free trials and best trading calls