GDP growth slows sharply to 7.1% in June quarter


GDP growth has slowed sharply to 7.1% in June quarter, against 7.9% expansion in March quarter, reported NDTV

Infrastructure sector grew at 3.2 per cent in July mainly because of improvement in performance of energy sector, especially refinery output.

GDP growth
Photo: NDTV

However, the growth rate of the eight infrastructure sectors — coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity — was slower than the 5.2 per cent recorded in June.

The core sectors, which contribute 38 per cent to the country’s total industrial production, had expanded by 1.3 per cent in July last year.

As per the data released by the government, the cumulative growth of the sector during April-July period of the fiscal was 4.9 per cent.

Refinery production expanded by 13.7 per cent in July as against 2.9 per cent in the year-ago month.

Coal output expanded by 5.1 per cent. In July 2015, the segment had contracted by 0.1 per cent.

Natural gas production witnessed a growth of 3.3 per cent as against a decline of 4.4 per cent in the same month of the last financial year.

The data revealed that steel sector contracted by 0.5 per cent while cement production witnessed a growth of 1.4 per cent in July.

Electricity generation slowed on annual basis.

(With PTI inputs)