Q1 GDP comes in at 5.5%; meets expectations

India's Q1 2013 gross domestic growth (GDP) has come in at 5.5%, slightly higher than analysts estimations of around 5.3%. The better than expected GDP rates might now dash any hopes from the the Reserve Bank of India to cut rates later in September at its monetary policy review.

The economic activities which registered significant growth in Q1 of 2012-13 over Q1 of 2011-12 are ‘construction' at 10.9 per cent, ‘financing, insurance, real estate and business services' at 10.8 per cent and ‘community, social and personal services' at 7.9 per cent.

The estimated growth rates in other economic activities are: 2.9 percent in ‘agriculture, forestry & fishing', 0.1 percent in ‘mining & quarrying', 0.2 per cent in ‘manufacturing', 6.3 percent in ‘electricity, gas and water supply' and 4.0 percent in ‘trade, hotels, transport and communication' during this period.

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.

GDP at factor cost at current prices in Q1 of 2012-13, is estimated at 21,78,778 crore, as against 19,19,286 crore in Q1, 2011-12, showing an increase of 13.5 per cent.

The wholesale price index (WPI), in respect of the groups, food articles, manufactured products, electricity and all commodities, has risen by 10.8 per cent, 5.2 per cent, 4.0 per cent and 7.4 per cent, respectively during Q1 of 2012-13, over Q1 of 2011-12. The consumer price index for industrial workers (CPI-IW) has shown a rise of 10.1 per cent during Q1 of 2012-13 over Q1 of 2011-12.

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