GDP disappoints with 4.7% growth in Dec quarter

Contraction in manufacturing (-1.9%) and mining (-1.6%) are the main reasons

The economy grew a slower-than-expected 4.7% in the three months through December, dragged down by a contraction in manufacturing and mining, the last GDP data released by the government before a general election showed on Friday.

Manufacturing contracted an annual 1.9% during the quarter compared with 1% growth in the previous quarter, while mining shrunk by 1.6%, the data showed.

Annual farm output growth also slowed to 3.6% in October-December period, from 4.6% in the previous quarter.
 

Sujan Hajra, chief economist at Anand Rathi said, "This does not give much confidence to the outlook for the economy. This is disappointing, but in line with the trend for the past several quarters. Achieving 4.9% for the full year looks challenging. While some improvement in segments like agriculture, mining and electricity is visible, the situation in manufacturing and many segments of services remains subdued. The overall picture doesn't change, only deteriorates marginally. All the more, it becomes more difficult to tighten monetary policy more in the next six months."

 

GDP Growth over a decade
Year	GDP growth rate (% change y-o-y)
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	8.9
2011-12	6.7
2012-13	4.5