India’s economy grew at the slowest quarterly rate since the global financial crisis in the three months through June, lower than expected and hurt by a contraction in mining and manufacturing, government data showed on Friday.
Analysts polled by Reuters had forecast growth of 4.7 per cent. June’s figure of 4.4 per cent was the slowest growth since the Jan-March quarter of 2009.
The economy has been steadily losing momentum in recent years. Economic growth virtually halved in two years to 5 per cent in the fiscal year that ended in March — the lowest level in a decade — and most economists surveyed by Reuters in the past week expect 2013/14 to be worse.
Manufacturing fell an annual 1.2 per cent during the quarter while mining fell by 2.8 per cent, the data showed. while farm output rose 2.7 per cent.
Fiscal deficit reaches nearly 63% of full-year target
India’s fiscal deficit during the April-July period was 3.41 trillion rupees, or 62.8 per cent of the full-year target, government data showed on Friday.
Net tax receipts for the first four months of the current fiscal year to March 2014 touched 1.45 trillion rupees, while total expenditure was 5.21 trillion rupees.
The country’s fiscal deficit during the 2012/13 fiscal year ending March fell to 4.9 per cent of the country’s gross domestic product, compared with 5.8 per cent a year ago.
In the annual budget presented in February, Finance Minister P. Chidambaram had set the fiscal deficit target at 4.8 per cent of GDP for the current fiscal year.