Best since ’91: 9.1% growth in first half, but farm sector crawls

It was in the air and now it’s in figures — led by a robust 9.2% growth in the second quarter ending September 30, the Indian economy grew a record 9.1% in the first half of the current financial year, putting the country within sniffing range of the magical double-digit rate.

Finance Minister P Chidambaram told reporters here that the record half-yearly growth rate was not “accidental”. “All macroeconomic parameters are good though inflation is slightly higher than what we would like to have,” he said. “Overall this will be one of the best years in recent times.”

Only twice in the past has the quarterly figure of 9.2% been bettered and the half-yearly growth of 9.1% is the highest since reforms began in 1991. The GDP grew by 9.3% in the fourth quarter of fiscal 2005-06 and 11.3% in third quarter of 2003-04.

The last quarter surge was led by sectors like manufacturing, which grew by 11.9%, compared to 11.3% in the first three months. Services grew by 13.9% against 13.2% in the same period last year. Agriculture was, however, the spoilsport, growing by just 1.7% against 3.4% in the first quarter.