Millennium Post

GDP grew 5.3% in Q2 after 5.7% rise in Q1

Poor showing by agriculture and manufacturing sector pulled down the country’s economic growth rate to 5.3 per cent in the second quarter, raising the clamour for rate cut by the RBI in its policy due next week. The Gross Domestic Product (GDP) growth rate declined from 5.7 per cent rate in the first quarter ended June.

However, the July-September quarter growth rate was higher compared to 5.2 per cent in the same quarter previous fiscal. The decline has been mainly on account of subdued performance of agriculture sector as its growth rate slipped to 3.2 per cent in second quarter from 5 per cent in corresponding period last fiscal.

Similarly, the manufacturing sector growth rate declined to 0.1 per cent during July-September quarter from 1.3 per cent a year ago. RBI is scheduled to announce it policy review on December 2.
Wholesale inflation came down to five-year low at 1.77 per cent in October while retail inflation hit a record low 5.52 per cent in the same month.

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