RTTNews - The Centre for Monitoring Indian Economy Pvt. Ltd., or CMIE, estimates the real GDP to have grown by a slower 4.7% in the June 2009 quarter, compared to 5.8% in the preceding quarter and 7.8% a year ago, with all the three major sectors-- industry, agriculture and services--leading to slower growth during this quarter.
Poor and delayed rainfall in the current monsoon season has adversely impacted agricultural activities. So, growth in the agricultural and allied sectors is estimated to have contracted by 2.8% during April-June 2009.
While growth in the manufacturing segment is estimated to be a muted 0.9 %, higher growth in the mining and quarrying and construction segments would have pushed up growth in industrial production to 2.6%.
Weak growth in trade, hotel and transportation activities is likely to have restricted the growth in the services segment to 8% in April-June 2009, compared to 10.2% in the year-ago quarter, the study felt.
The fall in commodity prices, poor export demand and holding back of purchases by potential buyers dented sales performance of Corporate India in the June 2009 quarter. Aggregate sales of 3,126 companies fell by 5.8%. This is mainly on account of a 28.7% decline in the sales of the petroleum products industry.
Aggregate net profits of Corporate India, however, grew by 19.9%, aided primarily by lower costs. A fall in expenses of raw materials, selling and marketing as also of other expenses contributed to the growth in profits and improvement in profitability.
Economic activity is expected to pick up from the September 2009 quarter. As a result, we expect GDP growth to improve to 7.1% in the March 2010 quarter. Correspondingly, we expect sales growth of Corporate India to improve in the December 2009 and March 2010 quarters, the CMIE study added.
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