Indian economy grows by 4.8 per cent in Q2

New Delhi: After sluggish growth in the first quarter, Indian economy grew by 4.8 per cent in the second quarter this fiscal due to improved performance of farm, manufacturing, construction and services sectors.

The country's gross domestic product (GDP) had expanded by 4.4 per cent in the April-June quarter of this fiscal and 5.2 per cent in July-September quarter last fiscal.

Commenting on the official data release, Economic Affairs Secretary Arvind Mayaram said: "I have been saying that growth will come back slowly in third and fourth quarter. But I am glad that it is better than the first quarter."

"There were many people who were predicting that it will be less. So I believe that going forward in third and fourth quarters, you would see a pick up. Growth in the fiscal (2013-14) would be upwards of 5 per cent," he added.

Farm sector output expanded by 4.6 per cent in July- September compared to 1.7 per cent in the corresponding period of last fiscal.

The sector grew by 3.6 per cent in April- September period this fiscal compared to 2.3 per cent in the same period last year.

The manufacturing sector posted a growth of one per cent in the second quarter of July-September this year as against almost flat growth 0.1 per cent in output year ago.

However, the output of the sector contracted in the first half of this fiscal (April-September by 0.1 per cent compared to 0.5 per cent last year.

Growth in electricity, gas and water supply was 7.7 per cent in the July-September quarter compared with 3.2 per cent in the same quarter of 2012-13.

During the first half of this fiscal, the segment grew by 5.7 per cent as against 4.7 per cent in the same period last year.

The construction sector expanded 4.3 per cent in second quarter as against 3.1 per cent in the year-ago period.

During the first half of this fiscal, the sector grew by 3.5 per cent as compared to 5.1 per cent in same period a year ago.

The trade, hotels, transport and communications segment grew at 4 per cent in the first quarter of July-September quarter against 6.8 per cent in the same period last year.

It has grown by 4 per cent in first half of April-September this fiscal compared to 6.4 per cent in corresponding period.

The growth rate in the services sector, including financing, insurance and real estate, stood at 10 per cent in second quarter as against 8.3 per cent in same quarter of 2012-13.

The segment grew by 9.5 per cent in first half of this fiscal as against 8.8 per cent in the same period year ago.

Mining and quarrying contracted by 0.4 per cent in the second quarter as against a 1.7 per cent growth in the same period of the last fiscal.

During April-September, sector's output also contracted by 1.6 per cent compared to growth of 1 per cent in same period a year ago.

The community, social and personal services segment grew by 4.2 per cent in the second quarter as compared to 8.4 per cent in same period last year.

During first half of this fiscal, segment grew by 6.6 per cent compared to 8.6 per cent last fiscal.