Farm, manufacturing push GDP to 8.9%

Driven by good performance of agriculture and manufacturing sectors, the Indian economy grew 8.9 per cent in the second quarter of the current financial year, up from 8.7 per cent in the corresponding period a year ago.

The growth rate for the first quarter was revised upwards to 8.9 per cent from 8.8 per cent.

This took the overall economic expansion during the first half (April-September) to 8.9 per cent, up from 7.5 per cent in the corresponding period a year ago.

According to the data released by the government on Tuesday, farm sector during the second quarter recorded a growth rate of 4.4 per cent, up from 0.9 per cent in the corresponding period a year ago.

The manufacturing sector during the same period recorded a growth rate of 9.8 per cent, compared to 8.4 per cent during the same period last year.

The growth rate in the second quarter exceed economist expectations of 8.6 per cent for the July-September quarter.

Although the government expects the growth to top 8.5 per cent in the current financial year, it may exceed the estimates if the present trend continues.