Mfg and mining pull down Q3 GDP growth to 6.2%

For full-year 6.5% economic growth, GDP needs to rise over 7% in Q4 

PTI New Delhi

India's economic growth rate decelerated to 6.2 per cent in the October-December quarter this fiscal, mainly due to poor performance by mining, manufacturing and all other sectors, with the exception of agriculture.

However, on a sequential basis, the economic growth rate in the third quarter showed improvement over 5.6 per cent recorded in the second quarter. The GDP (gross domestic product) growth was 9.5 per cent in the October-December 2023 quarter, according to the data released by the National Statistical Office (NSO) on Friday.

It also released the second advance estimate for the current fiscal and pegged the economic growth at 6.5 per cent against 6.4 per cent estimated in the first advance estimate released in January. The manufacturing sector's output growth, as per the gross value added (GVA), in the third quarter dipped to 3.5 per cent from 14 per cent in the year-ago period.

Mining and quarrying production growth slowed to 1.4 per cent in the third quarter from 4.7 per cent a year ago. The construction sector growth too slipped to 7 per cent from 10 per cent a year ago. However, the output of the farm sector increased by an impressive 5.6 per cent during the quarter compared to a growth of 1.5 per cent in the year-ago period.

The national accounts data showed that the electricity, gas, water supply, and other utility services segment grew 5.1 per cent in the third quarter against 10.1 per cent a year earlier. The GVA growth in the services sector -- trade, hotel, transport, communication and services related to broadcasting -- was 6.7 per cent during the third quarter against 8 per cent.