Economic growth to slow to 8.7 pc: Chidambaram
The pace of economic growth will ease primarily due to a slowdown in consumer demand and the manufacturing sector, says FM. Special: Budget & Beyond
By Agencies |
NEW DELHI: The pace of India's economic growth will ease to 8.7 per cent in the fiscal year ending March 31 primarily due to a slowdown in consumer demand and the manufacturing sector, finance minister P Chidambaram said on Friday.
That's down from expansion of 9.6 per cent in the 2006-2007 fiscal year, India's fastest expansion in nearly two decades.
``Overall, there was a deceleration in the growth of public and private consumption, which affected the growth of the services sector, including construction,'' Chidambaram said in Parliament on Friday.
The slower growth of consumer goods is also the most important factor in the slowdown of the manufacturing sector, he said.
That's down from expansion of 9.6 per cent in the 2006-2007 fiscal year, India's fastest expansion in nearly two decades.
``Overall, there was a deceleration in the growth of public and private consumption, which affected the growth of the services sector, including construction,'' Chidambaram said in Parliament on Friday.
The slower growth of consumer goods is also the most important factor in the slowdown of the manufacturing sector, he said.
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The country's industrial output growth slumped to 5.3 per cent in January from 11.6 per cent a year earlier, dragged by a 3.1 per cent contraction in the consumer goods sector, he said.
In the booming services sector, trade, hotels, transport and communication activities were likely to expand 12.1 per cent, compared to expansion of 11.8 per cent the previous fiscal year, a government statement said last month.
Agriculture appeared to be growing at a much slower rate of 2.6 per cent during the current financial year, down from 3.8 per cent the previous year, the government said.
``The deceleration in growth in agriculture is attributed to a slackening in the growth of winter sown crops,'' Chidambaram said on Friday.
There was a general slowdown in most sectors, not including electricity, hotels, transport and communications.
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