GDP growth in Q3 weakest in last 15 quarters: ASSOCHAM

GDP growth in Q3 weakest in last 15 quarters: ASSOCHAM Today said that India's GDP growth in Q3 of 2012-13, at 4.5 per cent, was the weakest in the last 15 quarters. Apex Industry body ASSOCHAM today said that India's GDP growth in Q3 of 2012-13, at 4.5 per cent, was the weakest in the last 15 quarters. "What is worrisome is that services sector growth, hitherto the mainstay of overall growth, has also decelerated to its slowest pace in a decade. The profits of the sector have increased marginally by 1.6 per cent due to a fall in the total expenses. It said that there had been an increase in sales, expenses & profits of the I.T. sector in the current quarter. The sales of the sector increased by 16.8 per cent, whereas the expenses increased by 27.4 per cent & profits increased by 8.2 per cent. The sales & expenses of the I.T. sector have more or less been the same in contrast to the last quarter, but there is a decline seen in the total profits. The Banking & Services sector has shown an increase in sales by 5.2 per cent, expenses b 6.4 per cent & profits by 8.2 per cent. Although the sector has shown growth in all parameters but in contrast to the previous quarter, sales & profits have declined but expenses have increased. IIP growth in January 2013 was 2.4 per cent & February 0.6 per cent. Growth in the core industries, which account for 37.9% of IIP, witnessed a slower growth of 3.15 % in January 2013 & February 2013 it was -2.5 per cent, the analysis said. The chamber said that the financial performance of 45 industry players in Q4 2012-13 indicated that their aggregate net sales declined by 2.9 per cent. While in the previous quarter of the same year, net sales have grown by 7.9 per cent on quarter on quarter basis. ''This reveals suboptimal scale of operations in Indian Industry'', said the ASSOCHAM chief.
Read more...