GDP growth at 5% not surprising
A closer look at the Table 1 shows that, contrary to earlier belief, growth may not have bottomed out yet in the current fiscal. Based on a first-half growth of 5.4% and advance estimates for FY13 at 5%, the growth rate for the second half is estimated at 4.6%. The growth rate in the services sector has almost collapsed and is projected to be only 6.6% in the current fiscal. Nearly all sub-components of the services sector are slowing signs of a significant downturn. Notably, the so-called resilience of the services sector may have now been overdone. For example, more than half of the service sub-sectors may be regarded as endogenous/derived (where growth depends on economic activity in other sectors). Among these sectors are:
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