Government revises 2012-13 GDP growth down to 4.5 percent

The government Friday sharply revised down economic growth for financial year 2012-13 to 4.5 percent from its earlier estimate of 5 percent due to lower farm and manufacturing output.

According to the first revised estimates of national income for 2012-13 released by the Central Statistics Office (CSO), India's gross domestic product (GDP) expanded by 4.5 percent.

This is the slowest pace of economic expansion in a decade. The country's GDP expanded by 6.7 percent in 2011-12.

In its estimates released in May last year, the CSO pegged the GDP growth for the 2012-13 financial year at 5 percent.

Farm sector growth fell to 1.4 percent, while manufacturing expanded by a sluggish 1.2 percent during the year under review.

Services sector that has 56.3 percent share in the country's GDP, posted a growth of 7 percent in 2012-13 year-on-year.

GDP at factor cost at constant (2004-05) prices in 2012-13 is estimated at Rs.54.8 lakh crore as against Rs.52.5 lakh crore in 2011-12, registering a growth of 4.5 percent during the year as against a growth of 6.7 percent in the year 2011-12, CSO said in a statement.

"At current prices, GDP in 2012-13 is estimated at Rs.93.9 lakh crore as against Rs.83.9 lakh crore in 2011-12, showing an increase of 11.9 percent during the year, as against an increase of 15.8 percent in the previous year," it said.

The growth rate of GDP for the financial year 2010-11 has been revised down to 8.9 percent from 9.3 percent, mostly due to the revised data received from the State Directorates of Economics and Statistics after the previous release made in January 2013, the CSO said.

For financial year 2011-12, the GDP growth is revised upward at 6.7 percent from earlier estimate of 6.2 percent.

The CSO released "First Revised Estimates" of national income, consumption expenditure, saving and capital formation for the financial year 2012-13 along with the second revised estimates for the year 2011-12 and third revised estimates for the year 2010-11.