The Hindu : Business : GDP growth 8.9 p.c. in April-June

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Saturday, Sep 30, 2006
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GDP growth 8.9 p.c. in April-June

Special Correspondent

Commercial vehicles, passenger traffic in aviation industry fuel growth

NEW DELHI: Economic growth has touched a high of 8.9 per cent in the first quarter of the current fiscal (April-June 2005-6), the most impressive performance since 2000-01. According to Finance Minister P. Chidambaram, the latest data released here on Friday was largely due to buoyant performance in the manufacturing and services sectors. He said credit to the manufacturing sector, which recorded a rise of 11.3 per cent, would neither be delayed nor denied.

Speaking to newspersons, he said the robust GDP growth in the first quarter was largely due to a 31 per cent rise in bank credit, 36.2 per cent growth in commercial vehicles, 32.2 per cent rise in passenger traffic by the aviation industry and 48.9 per cent spurt in telephone connections. He pointed out that without government intervention, the services sector had grown by 10.6 per cent over this period.

Agricultural growth was modest at 3.4 per cent. Barring electricity and construction, which slowed down to 5.4 per cent and 9.5 per cent from 7.4 per cent and 12.4 per cent, respectively, all sectors recorded positive growth.

On construction, Mr. Chidambaram noted that the growth was lower than last year but did not indicate a poor performance by the sector.

The 9.5 per cent growth was, he said, on the base of 12.4 per cent last year. As for electricity, he said it had picked up in July and August.

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