News: ‘Indian economy logs 8.3% growth in Q1’

(BL 02/09/2006) New Delhi - The economic growth in the first quarter of the current fiscal stood at 8.3 per cent, according to the `State of Economy' report conducted by Confederation of Indian Industry. The industrial growth registered in the first quarter was 10.1 per cent compared with 10.4 per cent growth during the corresponding quarter in the previous fiscal, according to the report. The output growth in mining sector during the first quarter of the current fiscal declined to 3.5 per cent from 4.3 per cent in the corresponding period last year. Worries remain Growth in the electricity sector stood at 5.1 per cent compared to 7.7 per cent during the corresponding period in 2005-2006. Manufacturing sector growth, however, kept up its momentum, recording 11.2 per cent growth in the first quarter of the current fiscal, which was the same as that of the corresponding period in the last fiscal. However, the chamber has expressed concerns over achieving a higher growth rate. "The need is not to sustain the current rate of growth in manufacturing but to take it to 14-15 per cent. The declining growth in mining and power sectors, and inflexibility in labour laws are concern areas in that regard," said Subodh Bhargava, Chairman, VSNL and Chairman, Public Policy Committee, CII. The sector also needs supportive policies in sectors such as food, clusters among others, according to the chamber. The chamber has stuck with its earlier forecast of eight per cent GDP growth for the current fiscal with agriculture, industry and services logging a three per cent, 8.5 per cent and 9.6 per cent growth, respectively, for the year.