GDP grows by robust 7.4 in first quarter

According to the data released by Central Statistical Organisation, GDP was estimated at Rs 3,52,117 crore at constant prices during April-June 2004-05, as against Rs 3,27,842 crore in the year-ago period. At current prices, GDP is estimated at Rs 6,47,421 crore in the first quarter of this fiscal, showing a growth of 12.3 per cent.

With India Inc improving its profits and expanding production capacities, the manufacturing sector logged a 8 per cent growth in first quarter of this fiscal from 6.6 per cent a year ago. The mining and quarrying activities were up by 6.1 per cent from 2.3 per cent last year, while electricity, gas and water supply grew by 6.3 per cent over 4.8 per cent over last year and construction was up by 3.6 per cent over 5.9 per cent.

Despite the volatility in the financial markets, the services sector continued to show a robust performance with financing, insurance, real estate and business services logging 7 per cent growth in the first three months of 2004-05 compared to 5.7 per cent in April-June 2003-04.