GDP growth in Q2FY2015 has been broadly on the expected lines: Finance Ministry

The Ministry of Finance observes that the growth in the Second Quarter of the current Financial Year 2014-15 has been broadly on the expected lines. Making its observation on the estimates of GDP for Q2 for 2014-15 released today, the Ministry states that in view of lower than expected monsoon in the current year vis-vis a good monsoon in 2013-14, lower growth in agriculture sector was expected. Similarly, in view of slower growth of IIP in the second quarter vis-vis the first quarter and in particular the manufacturing component; a lower growth in industry sector vis-vis the first quarter is not surprising, the Ministry added.

The Ministry observes that the overall and sectoral growth rates in Second Quarter for 2014-15 are lower than what was observed in the First Quarter except for services sector, where the growth has been little higher than in the first quarter. The Ministry further observes that this has been on account of an improvement in trade, hotels, transport and communication services as well as community, social and personal services.

It may be mentioned that the Economic Survey 2013-14 had predicted that the growth of GDP to be in the range of 5.4 to 5.9%. In the first half of the year, the growth has been 5.5%, which is broadly in line with the projections as well as the expectations, the Ministry added.

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