Indias economy slows

India's annual economic growth slowed to 6.2 percent in the October-December quarter of 2004, a shade higher than forecast, as a decline in farm output offset strong performances in manufacturing and services.

The expansion in gross domestic product was marginally higher than the median forecast of 6.1 percent growth in a Reuters poll but was the slowest rate since a 5.3 percent rise in April-June quarter of 2003.
Analysts said the numbers were broadly in line with their expectations, although weakness in farming was more pronounced than some anticipated.
"It is good news ... and we will achieve the (government's estimate of) 6.9 percent for the year," said Saumitra Chaudhuri, economic adviser with credit rating agency ICRA.
"The last quarter of the fiscal, growth should be around 7.0 percent. Growth is very much intact but the decline in the farm sector is above our estimate of 0.8 percent."
Last July's erratic monsoon has acted as a drag on Asia's fourth-biggest economy, underscoring the country's dependence on agriculture which provides a living for more than 600 million Indians.
India's GDP number lagged its Asian rival China, whose economy grew 9.5 percent over the same period, and is the latest in a string of figures which point to slowing growth.
The economy has decelerated from a 6.6 percent expansion in the year through the September quarter, 7.4 percent in the June quarter and 8.2 percent in the March quarter.
As a result, the government has estimated growth to be 6.9 percent in 2004/05, far lower than the rate of 8.5 percent in 2003/04 which was the fastest pace in nearly 15 years.
Thursday's figures are provisional and cover the third quarter of India's April-March fiscal year. India does not release seasonally adjusted GDP data.
Manufacturing expanded 10.4 percent in the year through the October-December quarter, accelerating from 9.3 percent in the July-September quarter, the data showed.
Services, which account for nearly half of GDP, rose 8.8 percent led by the booming tourism and telecom sectors. That compared with 8.2 percent in the July-September quarter.
But the key farm sector shrank 1.1 percent in the October-December period after falling 0.8 percent in the July-September quarter. It grew 3.4 percent in the April-June quarter.
Monsoon rains in July-September were 13 percent below the 70-year average, hitting a crucial sowing period for crops.