GDP grows 9.3 pc in Q1

GDP grows 9.3 pc in Q1
31 Aug 2007, 1203 hrs IST,PTI

NEW DELHI: Continuing the upswing on the strength of the good showing by manufacturing sector, the economy grew by 9.3 per cent during the April-June quarter of the current financial year.

Even though the growth in the first quarter is marginally less than 9.6 per cent recorded during comparable period last year, the economy has done commendably well as it comes on top of high 9.4 per cent growth recorded during 2006-07.

As per the data released by the government on the performance of the economy, the manufacturing sector grew by 11.9 per cent which is lower than 12.3 per cent recorded during the first quarter of 2006-07.

Inflation at over 15 months low

Inflation declined to below four per cent for the first time in more than 15 months to touch 3.94 per cent for the week ended August 18, much less than the Reserve Bank's projection for this fiscal.

Before this week, inflation was below this level only during the week ended April 29, 2006.

Wholesale prices-based inflation is now way below RBI's projection of around 5 per cent this fiscal and even less than its target of 4-4.5 per cent in the 'medium term'.

The latest numbers also assumed importance as it was 5.12 per cent in the corresponding period of last year. Inflation was 4.10 per cent in the previous week.

Although prices of essential food items like vegetables, fruits, milks, eggs, meat and fish rose, those of most manufactured products and non-food primary articles declined.