<p>India’s economic growth slowed to 7.1% in the April-June quarter, pulled down by agriculture, mining and construction sectors’ performance, but manufacturing accelerated 9.1% reflecting ‘Make in India’ was still intact.<br /><br /></p>.<p>India also remained the fast-growing large economy outpacing China, despite a six quarter low gross domestic product (GDP) number in April-June. Analysts said that they were hopeful of pick up in economic growth going forward, mainly driven by an increase in consumption demand from rural areas after a good monsoon and the 7th Pay Commission rewards handed out to central government employees.<br /><br />Official release of the data suggested that agriculture sector growth slowed to 1.8% in the first quarter, compared with 2.6% in the same quarter, last year.<br /><br />Analysts were puzzled why a better raabi crop production did not reflect in the Q1 numbers. Mining sector contracted -0.4% in April-June, compared with a growth of 8.5% in the same period last year. Construction sector output too came down to 1.5% from over 5% in the same period last year. The early arrival of monsoon has hit the construction sector, according to economists.<br /><br />Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on Wednesday, approved various measures to revive the construction sector which has been undergoing stress.<br /><br />Electricity, gas and water output was up 9.4%, compared with just 4% last year. The services sector grew 9.6% as against 8.8% in the corresponding period of last year with trade, hotels, transport, communication and services related to broadcasting sector expanding 8.1%.<br /><br />Going forward, the electricity production, especially hydel power, was expected to be better as the country’s reservoirs have been refilled by good monsoon rains. A major area of concern, however, emerged from the numbers thrown up by Gross Fixed Capital Formation (GFCF) which declined by 1.1% in April-June. GFCF denotes capital investment in the economy and indicates the actual investment activity on the ground.</p>
<p>India’s economic growth slowed to 7.1% in the April-June quarter, pulled down by agriculture, mining and construction sectors’ performance, but manufacturing accelerated 9.1% reflecting ‘Make in India’ was still intact.<br /><br /></p>.<p>India also remained the fast-growing large economy outpacing China, despite a six quarter low gross domestic product (GDP) number in April-June. Analysts said that they were hopeful of pick up in economic growth going forward, mainly driven by an increase in consumption demand from rural areas after a good monsoon and the 7th Pay Commission rewards handed out to central government employees.<br /><br />Official release of the data suggested that agriculture sector growth slowed to 1.8% in the first quarter, compared with 2.6% in the same quarter, last year.<br /><br />Analysts were puzzled why a better raabi crop production did not reflect in the Q1 numbers. Mining sector contracted -0.4% in April-June, compared with a growth of 8.5% in the same period last year. Construction sector output too came down to 1.5% from over 5% in the same period last year. The early arrival of monsoon has hit the construction sector, according to economists.<br /><br />Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi on Wednesday, approved various measures to revive the construction sector which has been undergoing stress.<br /><br />Electricity, gas and water output was up 9.4%, compared with just 4% last year. The services sector grew 9.6% as against 8.8% in the corresponding period of last year with trade, hotels, transport, communication and services related to broadcasting sector expanding 8.1%.<br /><br />Going forward, the electricity production, especially hydel power, was expected to be better as the country’s reservoirs have been refilled by good monsoon rains. A major area of concern, however, emerged from the numbers thrown up by Gross Fixed Capital Formation (GFCF) which declined by 1.1% in April-June. GFCF denotes capital investment in the economy and indicates the actual investment activity on the ground.</p>
