India's economy expanded at a better-than-expected pace in the first quarter of the current fiscal year, effectively ruling out any further monetary easing by the Reserve Bank of India (RBI) in the near term.
Gross Domestic Product (GDP) grew by 5.5% in the April to June quarter of 2012 versus expectations of a 5.3% growth.
The Q1 FY13 GDP growth matches the reading for the January-March 2012 period, which was the slowest growth rate since the first quarter of 2009.
The economic activities which registered significant growth in Q1 FY13 were ‘Construction’ at 10.9%, ‘Financing, Insurance, Real Estate and Business Services’ at 10.8% and ‘Community, Social and Personal Services’ at 7.9%.
The estimated growth rates in other economic activities are: 2.9% in ‘Agriculture, Forestry & Fishing’, 0.1% in ‘Mining & Quarrying’, 0.2% in ‘Manufacturing’, 6.3% in ‘Electricity, Gas and Water Supply’ and 4% in ‘Trade, Hotels, Transport & Communications’ during this period.
According to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in Q1 of 2012-13, the production of cereals recorded growth rate of 3.5 per cent during the Rabi season of agriculture year 2011-12 (which ended in June 2012) over the production in the corresponding season of previous agriculture year. The production of wheat increased by 8.1 per cent during the Rabi season of agriculture year 2011-12, while rice registered a decline of 16.6 per cent. Among the commercial crops, the production of oilseeds declined by 12.6 per cent during the Rabi season of 2011-12, while production of cotton and sugarcane recorded growth rates of 6.7 per cent and 4.5 per cent, respectively during agricultural year 2011-12.
According to the Index of Industrial Production (IIP) with 2004-05 base, the index of mining, manufacturing and electricity, registered growth rates of (-) 1.1 per cent, (-) 0.7 per cent and 6.4 per cent, respectively during Q1 of 2012-13, as compared to the growth rates of 0.6 per cent, 7.7 per cent and 8.3 per cent in these sectors during Q1 of 2011-12.
The key indicators of construction sector, namely, production of cement increased by
11.0 per cent and consumption of finished steel registered growth rate of 8.8 per cent, during Q1 of 2012-13.
Among the services sectors, the key indicators of railways, namely, the net tonne kilometres and passenger kilometres have shown growth rates of 1.2 per cent and 6.9 per cent, respectively during Q1 of 2012-13. In the transport sector, the sales of commercial vehicles, cargo handled at major ports, cargo handled by the civil aviation, passengers handled by the civil aviation registered growth rates of 6.1 per cent, (-) 5.5 per cent, (-) 4.7 per cent and 2.6 per cent respectively during Q1 of 2012-13 over Q1 of 2011-12. The other key indicators, namely, aggregate bank deposits and bank credits have shown growth rates of 15.9 per cent and 18.6 per cent, respectively as on June 2012.
The wholesale price index (WPI), in respect of Food Articles, Manufactured Products, Electricity and All Commodities, has risen by 10.8%, 5.2%, 4% and 7.4%, respectively during Q1 FY13 over the year-ago period.
The consumer price index (CPI) for industrial workers (CPI-IW) has shown a rise of 10.1% during Q1 FY13 over Q1 FY12.