Economy grows at 8.1 p.c. in Q2

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Services sector does well

Manufacturing logs a lower growth in Q2

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The economy registered a strong 8 per cent growth in the second successive quarter of the current fiscal, overcoming the lacklustre performance of agriculture and mining sectors.

The 8 per cent GDP growth during July-September 2005-06 compares favourably with the 6.7 per cent growth in the corresponding period last fiscal. The second quarter growth was a shade lower than the 8.1 per cent growth in the first quarter.

During April-September this fiscal, the economy grew by an impressive 8.1 per cent, compared to 7.1 per cent in the first half of last fiscal.

The strong performance exceeds the projections of economic think-tanks and even the Prime Minister, who had on Tuesday predicted a 7.5 per cent growth for this fiscal.

The farm sector witnessed a 2 per cent growth in the second quarter compared to nil growth during the year-ago period, according to figures released by the Central Statistical Organisation here on Wednesday.

The manufacturing sector logged a slightly lower 9.2 per cent growth in the second quarter compared to 9.6 per cent in the year-ago period.

Among services, the highest growth of 12 per cent was observed in trade, hotels, transport and communication in the second quarter of 2005-06, compared to 12.3 per cent in the same period last fiscal. — PTI