Indian
economy
Management discussion and analysis
It declined from 6.2% in 2011-12 to
5% in 2012-13, the slowest economic
growth in a decade, primarily due to a
decline in the services and industrial
sectors.
In turn, the subdued performance of
the services sector was largely due
to a slowdown in the global economy
(especially in Europe and the US which
translates into slower growth of the
IT sector). India’s industrial output
declined, led mainly by a contraction in
the manufacturing, mining and capital
goods sectors (proxy for investment
activity). The issues constraining
industrial production growth were low
investment on account of high interest
rates, depreciating rupee, high inflation
and policy logjam.
Estimates for 2013-14
Economic Survey:
The Indian economy
is slated to grow between 6.1-6.7% in
2013-14
CRISIL estimate:
The agency indicates
that the Indian economy is expected
to grow at 6.7% in 2013-14 due to a
consumption revival catalysed by an
acceleration in the agricultural sector
(predicated on a normal monsoon),
lower interest rates and higher
governmental spending.
India’s economic growth decelerated for the second year in succession.
GDP growth
(%)
at factor cost, at constant (2004-05) prices
‘06-07 ‘07-08 ‘08-09 ‘09-10 ‘10-11 2011-12 2012-13
9.6 9.3
6.7
8.6
9.3
6.2
5.0
Source: Central Statistics Office, Ministry of
Statistics & Programme Implementation
Advanceestimate
1st revisedestimate
2nd revisedestimate
Industry
2011-12
(1st revised
estimate)
2012-13
(Advance
estimates)
Agriculture, forestry, fishing
739,495
752,746
Mining & quarrying
108,249
108,713
Manufacturing
823,023
838,541
Electricity, gas & water supply
98,814
103,642
Construction
412,412
436,637
Trade, hotels, transport &
communication
1,440,312 1,514,593
Financing, insurance, real estate &
bus. Services
948,808 1,030,633
Community, social & personal
services
672,469
717,971
GDP at factor cost
4,243,582 5,503476
Source: Central Statistics Office, Ministry of Statistics & Programme Implementation
Gross domestic product
(at 2004-05 prices (in
`
crore))
1.8
% change over
pr. year
2012-13
2011-12
3.6
0.4
(0.6)
1.9
2.7
4.9
6.5
5.9
5.6
5.2
7.0
8.6
11.7
6.8
6.0
5.0
6.2
26
Kajaria Ceramics Limited
Annual Report
2012-13
25
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