Indian economy reaches 9.3 percent in the first quarter

Sep 02: Indian economy continues to grow around 9 percent in the continuously second year that shows the strong economic background of the nation. This time India’s economy growth reaches to 9.3 percent that is lesser than previous year’s April-June quarter. Last year the growth was 9.6 percent in the April-June quarter and the experts think that in the coming time, the economy growth rate will decrease for the next quarter due to combined impact of monetary tightening and recent rupee appreciation. Though the inflation rate becomes least in the last 15 months this quarter the inflation is measured 4 percent.

The economy growth increases this quarter from 9.1 percent of January-March quarter to 9.3 percent in April-June quarter. This growth was because of industrial and service grew and also because of agricultural growth. Central Statistical Organisation, CSO releases this data on Friday beyond the expectation of the experts who are expecting the Gross Domestic Product, GDP of around 8.9 percent. This time it increases 0.2 percent against previous quarter as per data.

Finance Minister P Chidambaram is quite confident about the GDP growth rate expecting to close near 9 percent by the end of the year. "I am confident that GDP growth rate will remain close to 9 per cent this year as well," said Finance Minister. On the other hand the Prime Minister thinks that only the higher growth rate that 10 percent can eradicate the poverty from the country. The current GDP rate of the country is the second highest growth rate followed by China.

"Construction has surprised on the upside and agriculture has turned out a bit stronger than expected," said Soumitra Choudhury, economic advisor at credit rating agency ICRA expressing the main reason behind GDP growth. But in the coming months, economists expect that growth rate may goes dipper and would be close the year around the 9% mark. RBI expects GDP to rise grow around 8.5% though Finance Minister told reporters he expected the economy to grow at close to 9%.