JOIN USPoor showing by agriculture and manufacturing sector pulled down the country’s economic growth rate to 5.3 per cent in the second quarter, raising the clamour for rate cut by the RBI in its policy due next week.
The Gross Domestic Product (GDP) growth rate declined from 5.7 per cent rate in the first quarter ended June.
However, the July-September quarter growth rate was higher compared to 5.2 per cent in the same quarter previous fiscal.
The decline has been mainly on account of subdued performance of agriculture sector as its growth rate slipped to 3.2 per cent in second quarter from 5 per cent in corresponding period last fiscal.
Similarly, the manufacturing sector growth rate declined to 0.1 per cent during July-September quarter from 1.3 per cent a year ago.
Commenting on the GDP data, CII director-general Chandrajit Banerjee said, “The RBI should review its status quoist approach and move towards paring interest rates in its forthcoming monetary policy to give a fillip to recovery both through higher consumption spending and opening up channels for investment.”
The RBI, which has maintained the interest at elevated level for the past 10 months, is scheduled to announce it policy review on December 2.