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India Sees Weaker 2013/14 Growth

The pace of India's economic growth in fiscal year 2013/14 was below expectations, though faster than the previous year, latest official estimates showed on Friday.

Gross domestic product rose 4.9 percent in the fiscal year ending March 31, mainly driven by strong performance in the financial and business services, farm and the utility sectors, figures from the Central Statistics Office revealed.

The figure is weaker than the finance ministry's expectation of 5 percent. Growth was hurt by contractions in manufacturing and mining & quarrying.

On January 31, the CSO had revised down the growth figure for 2012-13 to a decade-low 4.5 percent from 5 percent. The agency, however, revised up the growth figure for 2011-12 to 6.7 percent from 6.2 percent.

Farm sector output grew 4.6 percent, faster than 1.4 percent in the previous year, according to Friday's estimates. Output in the electricity, gas & water supply sector rose 6 percent versus 2.3 percent in the previous year. Construction output growth increased to 1.7 percent from 1.1 percent.

Output in the financing, insurance, real estate & business services rose 11.2 percent, faster than the previous fiscal's 10.9 percent growth. Trade, hotels, transport and communication component also registered growth of 3.5 percent, which was slower than 5.1 percent in the previous fiscal. Output growth in community, social & personal services improved to 7.4 percent from 5.3 percent.

Meanwhile, manufacturing output shrunk 0.2 percent, in contrast to a 1.1 percent growth in the previous year. Output in the mining and quarrying sector is estimated to have fallen 1.9 percent compared to a 2.2 percent decline in 2012/13.

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