Improved performance of mining, manufacturing and services sector pushed India's economic growth rate to two-and-half year high of 5.7 per cent in the April-June quarter, a development which the Finance Ministry expects to continue for rest of the fiscal.
"The performance of the economy in the first quarter (Q1) of 2014-15 is broadly on expected lines... With improvement in some important sectors including manufacturing and exports, along with the measures taken by the government, the economy can be expected to show further improvement in the remaining part of the year," Finance Minister Arun Jaitley said.
India's Gross Domestic Product had expanded by 4.7 per cent in the April-June quarter of the last fiscal ended March 31. In the January-March period (last quarter of 2013-14), it was 4.6 per cent.
The previous high of GDP growth rate was recorded at 6 per cent in the October-December quarter of 2011-12.
According to data released here today by the Central Statistics Office (CSO), the manufacturing sector recorded a growth of 3.5 per cent in Q1, 2014-15 as against a contraction of 1.2 per cent in Q1, 2013-14.
The mining sector too grew by 2.1 per cent in Q1, compared to a decline in production by 3.9 per cent in the year-ago period.
The highest growth rate during Q1, 2014-15 was recorded by financial services sector at 10.4 per cent, followed by electricity gas and water supply at 10.2 per cent.
"In order to convert the first signs of revival into a full-fledged recovery, it is necessary that the government continues on its path of implementing the reforms agenda which would restart the investment cycle and revive demand in the economy," CII Director General Chandrajit Banerjee said.
The construction sector expanded 4.8 per cent in first quarter of this fiscal as against 1.1 per cent growth in the year-ago period.
Growth in the trade, hotels, transport and communications segment also inched up to 2.8 per cent in Q1, from 1.6 per cent in the same period of 2013-14.
According to the data, the farm sector which includes agriculture forestry and fishing recorded a slower growth of 3.8 per cent in first quarter compared to 4 per cent a year ago.
Gross Fixed Capital Formation, a barometer of investment at current prices, is estimated at Rs 8.14 lakh crore for Q1, as against Rs 7.32 lakh crore a year ago. At constant (2004-2005) prices, the GFCF is estimated at Rs 4.96 lakh crore in Q1 as against Rs 4.63 lakh crore.
"We are hopeful that the 'Make in India' vision of the Hon’ble Prime Minister supported by requisite policy framework and implementation will help India move to the higher rungs of the manufacturing ladder," said Ficci President Sidharth Birla, reacting to the GDP data.
The production of coarse cereals and pulses registered growth rates of 11.2 per cent and 6.2 per cent during the Rabi season of agriculture year 2013-14 (ended June). Rice and wheat also registered a growth of 15 per cent and 2.6 per cent over the production in the corresponding season of previous agriculture year, the press release said. Among the commercial crops, production of oilseeds increased by 3 per cent.
Aggregate bank deposits and credits have shown growth rates of 12.4 per cent and 13.3 per cent respectively as on June 2014, as against growth of 13.5 per cent and 13.5 per cent respectively as on June 2013.
The Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs 16.71 lakh crore in Q1 as against Rs 14.92 lakh crore same quarter last year.
At constant (2004-05) prices, the PFCE is estimated at Rs 9.35 lakh crore in Q1 as against Rs 8.85 lakh crore in same period a year ago.
Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 3.81 lakh crore in Q1 as against Rs 3.29 lakh crore in same quarter last fiscal.
At constant (2004-2005) prices, the GFCE is estimated at Rs 1.87 lakh crore in Q1 as against Rs 1.72 lakh crore same priod of 2013-14.