FY13 GDP growth falls to decade low of 5%, slows to 4.8% in Q4

Manufacturing sector grows at 2.6%, farm sector growth at 1.4% in Q4

India's GDP refused to grow by large numbers despite the much-touted reforms, growing at a snail's pace of 4.8% in the fourth quarter from 4.7% in the third quarter of 2012-13.

The Indian economy touched a decade-low GDP growth rate of 5% in 2012-13, which is in line with the advanced estimates.

The economic growth slowed down to 4.8% in January-March quarter of 2012-13 compared to 5.1% in the same period previous fiscal.

Mining sector continues to be a major concern with a sluggish -3.1% growth in the fourth quarter of the current fiscal year against 0.1% in the same period last year.
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GDP growth: Uninspiring story

 

When the Central Statistics Office calculated India’s economic growth at a 10-year low of five per cent for 2012-13
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in its advance estimates, the finance ministry disagreed. The ministry said the GDP growth would be closer to 5.5 per cent or slightly more when final estimates are announced.
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The manufacturing sector, which has been a cause of concern lately, however, had a silver lining as it grew 2.6% during this quarter against 0.1% in fourth quarter of 2011-12, the data showed.

Agriculture growth also declined to 1.4% in the last quarter compared to 2.0% y-o-y.

During 2012-13, manufacturing sector grew by a meagre 1% compared to 2.7% in the previous fiscal. The contraction in mining sector remained unchanged at 0.6% in 2012-13 over the previous fiscal. The agriculture sector also grew at a slower rate of just 1.9 per cent in 2012-13 compared to 3.6 per cent in 2011-12.

The growth rate of electricity, gas and water supply also slowed to 2.8% in the fourth quarter from 3.5% witnessed in the same quarter of 2011-12. The segment grew by 4.2% in 2012-13 compared to 6.5% in previous fiscal.

Construction sector expanded by 4.4% in Q4 of 2012-13, as against 5.1% in the year-ago period. The segment grew by 4.3% in 2012-13 as against 5.6% in the previous fiscal.

Trade, hotels, transport and communications segment grew at 6.2% in the January-March quarter this year as against 5.1% in the same period a year ago. The sector grew at 6.4% in 2012-13 compared to 7% in the previous fiscal.

Growth rate of services sector, including insurance and real estate, stood at 9.1% in fourth quarter against 11.3% in same quarter of 2011-12. The segment grew by 8.6% in 2012-13 compared to 11.7% in 2011-12.

Community social and personal services registered a growth of 4% in Q4 period compared to 6.8% in the January-March quarter of 2011-12. The segment grew by 6.6% in 2012-13 against 6% in the previous fiscal.

GDP growth over a decade
Year	GDP growth
rate (%)
2002-03	4
2003-04	8.1
2004-05	7
2005-06	9.5
2006-07	9.6
2007-08	9.3
2008-09	6.7
2009-10	8.6
2010-11	9.3
2011-12	6.2
2012-13	5
Source: Ministry of Finance and PIB

Highlights:

Manufacturing sector growth was at 2.6% vs 0.1% y-o-y.

Mining sector growth at -3.1% vs 5.2% y-o-y.

Construction sector growth at 4.4% vs 5.1% y-o-y.

Farm sector growth at 1.4% vs 2% y-o-y.

Q3 GDP growth revised to 4.7% from 4.5%.