FUELLED BY a double-digit growth in manufacturing and services, the Indian economy grew by 9.2 per cent during July-September. "Let us savour the moment," Finance Minister P. Chidambaram said on Thursday while announcing the results. Only twice in the past has the quarterly figure been bettered, he added.
According to the Central Statistical Organisation while manufacturing grew by 11.9 per cent in the second quarter compared to 11.3 per cent in the first, services like trade, hotels and transport grew by 13.9 per cent against 13.2 per cent. Agriculture along with allied activities, however, grew by just 1.7 per cent in the second quarter against 3.4 per cent in the first quarter.
Inflation, at 5.23 per cent, continues to be a "worry" for Chidambaram. Experts also warn against possible overheating of the economy, and the adverse impact of the decline in agriculture growth. Former RBI governor Bimal Jalan said: "One has to exercise caution against possible overheating in the economy, especially with the glaring mismatch in the over-flow of funds into the stock market and the under-flow into banks." badarinath@hindustantimes.com