GDP grows by 9.2%

The economy grew by 9.2% in the July-September quarter (Q2) and 9.1% during the first half of the current fiscal.

In the next five year plan the target GDP rate is set as 9%. It seems that this target is achievable with the result of the second quarter GDP growth. This is a good sign as far as the Indian economy is concerned.

This is the highest growth in the GDP from the time the Central Statistical Organization started compiling the quarterly GDP data (in the year 1996-97). The highest growth was seen in the Trade, Hotels and Transport Communication sector (13.9%). The growth is not equally distributed across the various sectors of the economy. The agriculture which contributes up to 26% in the GDP has seen a growth of just 13.9%. The manufacturing sector has a good growth (11.9%) over the past year.
Last year the GDP growth for the second quarter (Q2) was 8.4%. The growth in GDP for the first six month of this year is 9.1% which shows a consistent good performance over the last years 8.5%. The important thing is the consistent performance. Now the major thrust should be given to maintain this growth rate. It is a difficult task to have a GDP growth of 8 to 9 percent on a continuous basis. But it seems quite achievable due to the good performance across various sector of the economy. The only concern is the agricultural sector. Now it has become important to look in to this sector more seriously.