GDP BY ECONOMIC ACTIVITY

Quarterly GDP at factor cost at 2004-05 prices for second Quarter of 2011-12 has grown by 6.9 per cent over the corresponding Quarter of previous year.
GDP at factor cost at current prices in Quarter 2 of 2011-12 has grown in Quarter 2 of 2010-11 by 16.0 per cent. Thus, the implicit price contribution in the GDP in the second Quarter is over 9 per cent.

The economic activities which registered significant growth in this Quarter of 2011-12 over that of 2010-11 are, ‘electricity, gas and water supply’ at 9.8 per cent, ‘trade, hotels, transport and communication’ at 9.9 per cent and ‘financing, insurance, real estate and business services’ at 10.5 per cent. The estimated growth rates in other economic activities in this Quarter are 3.2 per cent in ‘agriculture, forestry & fishing’, 2.7 per cent in ‘manufacturing’ and 4.3 per cent in ‘construction’ and 6.6 per cent in ‘community, social and personal services’. The growth of ‘mining and quarrying’ sector declined to (- )2.9 per cent during this period. But the wholesale price index (WPI), in respect of the groups - food articles, manufactured products, electricity and all commodities, has risen by 9.0 per cent, 7.7 per cent, (-)0.2 per cent and 9.6 per cent, respectively during Quarter 2 of 2011-12, over Quarter 2 of 2010-11.
The economic activities which registered significant growth in this Quarter of 2011-12 at current prices over that of 2010-11 are, ‘electricity, gas and water supply’ at 9.6 per cent, ‘trade, hotels, transport and communication’ at 17.5 per cent and ‘financing, insurance, real estate and business services’ at 20.6 per cent. The estimated growth rates in other economic activities in this Quarter are 15.9 per cent in ‘agriculture, forestry & fishing’, 9.6 per cent in ‘manufacturing’ and 14.3 per cent in ‘construction’ and 16.6 per cent in ‘community, social and personal services’. The growth of ‘mining and quarrying’ sector was 13.8 per cent during this period.
As can be seen, price is the main factor in the growth of the Gross Domestic Product at factor cost at prevalent prices. Most of the products and services produced in India become large only due to increase in their prices except for the sector like Electricity, Gas and Water Supply for which the value addition had been very significant in spite of implicit decrease in the prices in the last Quarter of 2011-12.