Pranab expresses concern as GDP growth slips to 6.9 percent

New Delhi : Finance Minister Pranab Mukherjee Wednesday expressed concern over the slowdown in economic growth at 6.9 percent in the second quarter of 2011-12, and said the government would do its best to improve the situation.

India’s economic growth slumped to 6.9 percent in the quarter ended September from 8.4 percent in the corresponding quarter of last year due to poor performance of the manufacturing and mining sectors.

The gross domestic product (GDP) growth in the first six months of the current financial year slowed to 7.3 percent from 8.6 percent during the same period of last fiscal, official data showed Wednesday.

“Had it been 10 years ago, this would have elated me, but today I cannot have that satisfaction because we reached the higher trajectory of growth, from there we are slipping,” Mukherjee told reporters here while reacting on the second quarter data.

The finance minister said the government would do its best to improve the situation. “Nonetheless we shall have to try to face the situation and to see what best we can do at this given situation,” he said.

Mukherjee said the overall GDP growth has slowed in the last two quarters mainly because of poor performance of the mining and manufacturing sectors.

Growth of the manufacturing sector slumped to 2.7 percent for the quarter ended Sep 30, 2011, as compared to 7.8 percent during the same quarter of the last fiscal.

The mining sector growth slowed to 3.2 percent during the quarter under review from 8 percent during the corresponding quarter of 2010-11.

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