praveen
01-12-2007, 07:39 AM
Higher farm output and improved growth in the mining sector helped India's economy expand 8.9 percent in the second fiscal quarter despite a sharp slowdown in manufacturing growth, according to government data released Friday.
The expansion of the country's gross domestic product in the July-September period vs. a year ago was slower than the 10.2 percent growth recorded in the same quarter last year and down from the 9.3 percent pace seen in the April-June quarter.
The growth still beat the expectations of most analysts, who had predicted a bigger slowdown because higher interest rates have slowed growth in key sectors such as automobiles and consumer goods. Export growth has also fallen off in recent months because of a stronger rupee, which has appreciated about 10 percent since April.
Friday's data showed manufacturing output grew 8.6 percent in the July-September quarter compared with 12.7 percent in the same period a year ago.
Agricultural expansion, meanwhile, accelerated to 3.6 percent from 2.9 percent a year ago, and mining output rose 7.7 percent in the July-September period, up from 3.9 percent.
Services also grew slower during the latest quarter.
The expansion of the country's gross domestic product in the July-September period vs. a year ago was slower than the 10.2 percent growth recorded in the same quarter last year and down from the 9.3 percent pace seen in the April-June quarter.
The growth still beat the expectations of most analysts, who had predicted a bigger slowdown because higher interest rates have slowed growth in key sectors such as automobiles and consumer goods. Export growth has also fallen off in recent months because of a stronger rupee, which has appreciated about 10 percent since April.
Friday's data showed manufacturing output grew 8.6 percent in the July-September quarter compared with 12.7 percent in the same period a year ago.
Agricultural expansion, meanwhile, accelerated to 3.6 percent from 2.9 percent a year ago, and mining output rose 7.7 percent in the July-September period, up from 3.9 percent.
Services also grew slower during the latest quarter.