India's economic growth (GDP) declines to 5.3% in July-Sept quarter, from 6.7% year ago
however discarded the weak GDP numbers, with BSE Sensex rising 169 points to close at 19,354 points.
During the July-September of this year, manufacturing sector grew marginally by 0.8 per cent, against 2.9 per cent growth in the same period of 2011-12. Farm sector output expanded by just 1.2 per cent in the July-September period this fiscal against 3.1 per cent in the same period last year.
The economic growth had declined to a nine year low of 6.5 per cent in the 2011-12 fiscal. In the current fiscal, the RBI has projected the GDP growth at 5.8 per cent in the current fiscal.
Chidambaram had earlier said the economy faces a "difficult situation" and the way to overcome this difficult situation is through innovation and increasing the production of goods and services.
Investment activity picked up in September quarter, as the growth in gross fixed capital formation stood at 4.1 per cent, up from 0.7 per cent growth in first quarter, Ficci said, adding that "it may still be early to say that the slowdown in investment activity has bottomed out".
The RBI is scheduled to come out with its mid-quarter policy review on December 18 and analysts expects that it will reduce the cash reserve ratio (CRR).
"The RBI is likely to reduce the CRR by 25 bps in the December mid-quarter policy review to ensure credit flow to productive sectors," ICRA Senior Economist Aditi Nayar said.
During the July-September quarter, mining and quarrying sector showed some improvement and recorded a growth of 1.9 per
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