Government lowers 2012-13 economic growth to 4.5 pc from 5 pc

The government today said the economy may have expanded by 4.5 per cent in 2012-13, compared with the earlier estimate of 5 per cent, on account of subdued performance in agriculture, mining and manufacturing.

However, gross domestic product (GDP) growth in 2011-12 has been revised upwards to 6.7 per cent from 6.2 per cent, according to the estimates of National Income, Consumption Expenditure, Saving and Capital Formation.

"Gross domestic product 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 per cent during the year as against a growth of 6.7 per cent in the year 2011-12," a press statement said.

Growth in 2012-13 is the lowest in a decade, with the previous low of 4 per cent recorded in 2002-03.

The estimates for 2012-13 were released by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation, along with the second revised estimates for 2011-12 and third revised estimates for 2010-11.

Growth for 2010-11 was revised downwards to 8.9 per cent from 9.3 per cent earlier in the third and final revision.

According to the revised estimates for 2012-13, the primary sector, which includes agriculture, fishing, mining and quarrying, grew by 1 per cent against the earlier estimate of 1.6 per cent.

Growth in the secondary sector, including manufacturing, electricity, gas, water supply and construction, was 1.2 per cent, down from the original estimate of 2.3 per cent.

The 4.5 per cent growth rate in 2012-13 is on account of expansion in financing, insurance, real estate & business services (10.9%), transport, storage and communication (6%) and community, social and personal services (5.3%).