Country Report India April 2011

Economic performance: Data show that growth slowed to 8.2% in October-December

Real GDP growth (at factor cost) slowed to 8.2% year on year in October-December 2010, according the Central Statistical Organisation. This compares with quarterly expansions of 8.9% in both the first and second quarters of 2010/11. The latest quarterly national-accounts data are in line with a raft of economic indicators showing that although it is still growing strongly, India's economy has lost momentum since the start of 2010/11. At 1.7 percentage points in October-December, the industrial sector's contribution to GDP growth was down considerably compared with previous quarters. The services sector continues to account for the great bulk of economic expansion: its contribution to GDP growth in October-December stood at 4.9 percentage points. Agriculture meanwhile contributed more than usual to growth as the farm sector expanded by a robust 8.9% year on year. This was helped by a low base, as agricultural output had declined by 1.6% year on year in October-December 2009.

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