May 29, 2009

India’s GDP grew 5.8 percent in quarter

India's gross domestic product rose 5.8 percent in the first quarter, the government said Friday.

The construction sector grew 6.8 percent in the quarter after growing 4.2 percent in the fourth quarter of 2008. Farm output grew 2.7 percent. Manufacturing grew 1.4 percent, following 0.9 percent growth in the previous quarter, the BBC reported.

Overall, however, growth came in lower than a year ago when the GDP rose 8.6 percent.

In the full year ending March 31, the economy grew 6.7 percent, down from the 9 percent annual rate from the previous year.

The GDP growth number justifies the claim that India is dealing with the global crisis from a position of strength, Bank of Baroda chief economist Rupa Rege Nitsure said.