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Journalism of Courage
NEW DELHI, FEB 5: The growth rate of the economy during the current financial year is estimated at 6 per cent as compared to 6.4 per cent recorded in the previous year. The slowdown is mainly on account of deceleration in the services and manufacturing sectors.
Despite good performance in the primary sector of agriculture, mining and quarrying, the GDP growth fell largely on account of decline in growth rate of manufacturing sector from 6.8 per cent in 1999-2000 to 6.4 per cent this year.
The growth rate in community, social and personal services dropped to 7.6 per cent from 11.8 per cent, while financing, insurance, real estate and business services registered a growth of 9.6 per cent, down from 10.1 per cent during the previous year. Trade, hotels, transport and communication remained virtually stagnant with growth in the sector estimated at 8 per cent during the current financial year, same as that in the previous year.
In the agriculture sector, which recorded a growth of 0.9 per cent against 0.7 per cent in 1999-2000, production of rice and coarse cereals has declined by 3.4 per cent and 0.5 per cent respectively during the kharif season of the current fiscal over the corresponding season in previous year. However, production of pulses has registered a positive growth rate of 11.8 per cent during the 2000-01 kharif season as against the previous year.
Among the commercial crops, oilseeds have registered a negative growth rate of 1.8 per cent during the current year, while production of cotton and sugarcane is expected to register growth rates of 13.1 per cent and 0.5 per cent respectively during 2000-01 compared to 1999-2000.
The construction sector is expected to show 8.7 per cent growth rate during 2000-01, mainly on account of growth in production of 12.8 per cent in steel and 2.3 per cent in cement during April-December 2000 over the corresponding period in the previous year.
Based on the past trends, mining sector is expected to grow by 4.5 per cent and electricity by 5.6 per cent during 2000-01. However, GDP growth at current prices is estimated to grow by 11.4 per cent during the current financial year, up from 10.5 per cent in the previous year, while per capita income (based on current prices) is also expected to show a spirt in growth by 9.9 per cent at Rs 17,643 against Rs 16,047 during 1999-2000.
