Indian economy grows by 8.8 % in Q1 of 2010-11

A coal power station.

India's economy grew by 8.8 per cent to Rs 11,32,778 crore in the first quarter (Q1) of 2010-11 as compared to s 10,40,949 crore in the corresponding quarter of 2009-10, official data released here today said.

The economy had grown by 8.6 per cent in the last quarter of 2009-10 and clocked 7.4 per cent growth for the fiscal year, ended March 2010, as a whole.

In its estimates of the Gross Domestic Product (GDP) for Q1 (April-June) of 2010-11, the Central Statistics Office of the Ministry of Statistics and Programme Implementation said the economic activities which registered significant growth in the quarter were manufacturing (12.4 per cent), trade, hotels, transport and communication (12.2 per cent)and mining and quarrying (8.9 per cent).

The growth in agriculture, forestry & fishing during the quarter was 2.8 per cent, an official statement said, quoting the data.

According to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in Q1 of 2010-11, the production of cereals during the Rabi season of 2009-10 (which ended in June 2010) declined by 2.2 per cent whereas pulses production increased by 4.2 per cent as compared to the Rabi Season of the previous year.

Cotton and sugarcane registered growths of 7.5 per cent and (-) 2.6 per cent respectively during the agriculture year ending June 2010 as compared to the corresponding previous year.

The statement said that, according to the Index of Industrial Production (IIP), mining, manufacturing and electricity, registered growth rates of 10.4 per cent, 12.2 per cent and 5.6 per cent, respectively during Q1 of 2010-11, as compared to the growth rates of 6.8 per cent, 3.4 per cent and 5.9 per cent in these sectors during Q1 of 2009-10.

Among the services sectors, the key indicators of railways, namely, the net tonne kilometres and passenger kilometres have shown growth rates of 4.7 per cent and 5.6 per cent, respectively during Q1 of 2010-11.

In the transport and communication sectors, the production of commercial vehicles, cargo handled at major ports, cargo handled by the civil aviation, passengers handled by the civil aviation and the total stock of telephone connections (including WLL and cellular) registered growth rates of 57 per cent, 1.9 per cent, 25.6 per cent, 19.1 per cent and 36.7 percent respectively over Q1 of 2009-10.3, the statement said.

It said that the GDP at factor cost at current prices in Q1 of 2010-11 was estimated at Rs. 16, 00,035 crore, as against Rs. 13, 14, 656 crore in Q1, 2009-10, showing an increase of 21.7 per cent.

The wholesale price index (WPI) has risen by10.6 percent in Q1 of 2010-11 over Q1 of 2009-10.

The increase in respect of food articles, mining, manufactured products and electricity were 16.6 per cent, 14.5 per cent, 7.1 per cent and 7.7 per cent respectively. The consumer price index for industrial workers (CPI-IW) has shown a rise of 13.7 per cent during Q1 of 2010-11 over Q1 of 2009-10, it said.

Private Final Consumption Expenditure (PFCE) at current prices is estimated at Rs.9, 96,630 crore in Q1 of 2010-11 as against Rs. 7,88,013 crore in Q1 of 2009-10. At constant (2004-05) prices, the PFCE is estimated at Rs. 6, 61,123 crore in Q1 of 2010-11 as against Rs. 6, 58,856 crore in Q1 of 2009-10. In terms of GDP at market prices, the rates of PFCE at current and constant (2004-05) prices during Q1 of 2010-11 are estimated at 58.2 per cent and 58.0 per cent, respectively, as against the corresponding rates of 57.4 per cent and 59.9 per cent, respectively in Q1 of 2009-10.

Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs. 1, 95,316 crore in Q1 of 2010-11 as against Rs. 1, 58,390 crore in Q1 of 2009-10. At constant (2004-05) prices, the GFCE is estimated at Rs. 1, 25,425 crore in Q1 of 2010-11 as against Rs. 1, 26,171 crore in Q1 of 2009-10. In terms of GDP at market prices, the rates of GFCE at current and constant (2004-05) prices during Q1 of 2010-11 are estimated at 11.4 per cent and 11.0 per cent, respectively, as against the corresponding rates of 11.5 per cent in both the cases in Q1 of 2009-10.

Gross Fixed Capital Formation (GFCF) at current prices is estimated at Rs. 5, 09,729 crore in Q1 of 2010-11 as against Rs. 4, 29,232 crore in Q1 of 2009-10. At constant (2004-05) prices, the GFCF is estimated at Rs. 3, 55,452 crore in Q1 of 2010-11 as against Rs. 3, 42,912 crore in Q1 of 2009-10. In terms of GDP at market prices, the rates of GFCF at current and constant (2004-05) prices during Q1 of 2010-11 are estimated at 29.8 per cent and 31.2 per cent, respectively, as against the corresponding rates of 31.3 per cent and 31.2 per cent, respectively in Q1 of 2009-10, the statement added.

NNN