India's economy has logged its slowest pace of quarterly expansion in the
recent past, with gross domestic product (GDP) rising by a mere 6.1 per
cent in the quarter ended December, official data showed on Wednesday.
The result sparked widespread fears of recession and is bound to have an
adverse impact in the market.
The economy had grown 8.3 per cent
in the previous corresponding period. Higher interest rates, global
economic turmoil rubbing off on the country and a slew of policy issues
curbing investment sentiment has contributed to the economy's dismal
Manufacturing was hit hard, logging a meagre 0.4
percent growth in the quarter under review, compared to 7.8 per cent in
the previous corresponding period, according to data released by the
ministry of statistics and programme implementation.
another sector hit badly and contracted by 3.1 per cent. It had registered
a growth of 6.1 per cent in the Sep-Dec quarter of 2010-11. Agriculture
also saw a sharp decline at 2.7 per cent but that was mostly because of a
high base as the sector had grown 11 per cent in the year-ago period. The
GDP is expected to increase by only 6.9 per cent for the whole year.
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