Friday, September 30 2005 14:52 Hrs (IST) - World Time -

New Delhi: The economy grew by 8.1 per cent during first quarter of this fiscal from 7.6 per cent in the same period of 2004-05, backed by a robust growth in industry and services sectors.

However, the farm sector witnessed a 2 per cent growth during April-June 2005-06 against 3.8 per cent during the year ago period, according to figures released by Central Statistical Organisation today (Sept 30, 2005).

Manufacturing sector logged an impressive 11.3 per cent during first three months of 2005-06, compared to 7.9 per cent during the year ago period. Most the services grew by over 8 per cent during the period.

Among the services, the highest growth of 12.4 per cent was observed in trade, hotels, transport and communication during the first three lean months of 2005-06 compared to 11.5 per cent during the same period last fiscal.

Financing, insurance, real estate and business services grew by 8.3 per cent in the first quarter of this fiscal from 7 per cent in the year ago period.

However, the growth in community, social and personal services was lower at 6.1 per cent during April-June 2005 compared to 8.2 per cent in the year ago period.

Among the other industrial sectors, growth in electricity, gas and water supply was at 7.9 per cent in the first three months of this fiscal against 6.1 per cent a year ago.

Construction activities expanded by 7.9 per cent during the same quarter of this year compared to 5 per cent in the last year.

However, the mining and quarrying sector faltered with growth slowing down to 3.2 per cent during April-June 2005 from 6.9 per cent during the year ago period.

In absolute terms, the Gross Domestic Product of the country at factor cost was at Rs 3,82,534 crore during the first quarter of 2005-06 as against Rs 3,53,717 crore during the year ago period.

While the real GDP growth at constant prices was 8.1 per cent during the first three months, the nominal GDP at current prices expanded by 12.8 per cent during the quarter compared to 12 per cent last year.

Among key agriculture crops, rice production grew by 37.2 per cent, while wheat declined by 0.2 per cent during the Rabi season of 2004-05 (which ends in June, 2005) compared to the previous corresponding period.

Coarse cereals production rose by 25.3 per cent, while pulses fell by 4 per cent during the period, according to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in Q1 of 2005-06.

Among the commercial crops, the production of oilseeds increased by 31.1 per cent during the Rabi season of 2004-05, while the production of cotton recorded growth rates of 22.6 per cent and sugarcane declined by 2.1 per cent during the agriculture year, 2004-05.

According to the latest estimates available on the Index of Industrial Production (IIP), the index of mining, registered a growth rate of 4.2 per cent during the first three months of this fiscal against 5.7 per cent in the previous Q1, while manufacturing grew by 11.1 per cent against 8.1 per cent and electricity by 7.7 soared to 5.9 per cent.

The key indicators of construction sector cement and finished steel registered growth rates of 10.7 per cent and 6.7 per cent, respectively during Q1 of 2005-06 against the 3.1 per cent and 8.9 per cent during the corresponding period of last fiscal.

In services sector, aggregate bank deposits witnessed a 14.6 per cent growth rate during April-June period of 2005 compared to the previous Q1, while bank deposits rose by 32.1 per cent during the period.

Revenue expenditure of the Central Government excluding interest payments grew by 12.5 per cent during Q1 of this fiscal against the first quarter of last fiscal.