The Hindu : GDP up 5.7 p.c. in Q1

Online edition of India's National Newspaper
Wednesday, Oct 01, 2003

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GDP up 5.7 p.c. in Q1

By Our Special Correspondent

NEW DELHI, SEPT. 30. Indicating a higher economic growth possibility this year, the Central Statistical Organisation (CSO) today released figures which show that the gross domestic product (GDP) grew at the rate of 5.7 per cent in the first quarter (April-June) of 2003-04.

However, the first quarter figures being for the pre-monsoon period, the expected higher agricultural growth this year is not reflected in the data. Economists expect the agricultural sector to grow robustly this time because of the plentiful monsoons as also the low base of last year because of widespread drought.

Sectoral details from the CSO show that the manufacturing sector grew by 6.4 per cent, construction 5.7 per cent, trade, hotels, transport and communications by 9.6 per cent and financing, insurance, real estate and business services by 7.1 per cent. Posting low growth were sectors such as agriculture, forestry and fishing which grew 1.7 per cent, mining and quarrying at 3 per cent, electricity, gas and water supply at 4.8 per cent and community, social and personal services by 4.3 per cent. GDP at factor cost at constant prices (1993-94 being the base year), therefore, registered a growth of 5.7 per cent against 5.3 per cent registered in the first quarter of 2002-03.

The CSO figures also bring out the extent of drop in agricultural production last year. For instance, during the Rabi season (which ended in June 2003) of the agriculture year 2002-03, rice and wheat output were down 30.9 per cent and 3.5 per cent, respectively, while coarse cereals and pulses were down 13.2 per cent and 10.2 per cent as compared to the output in the corresponding period of the previous year.

Among commercial crops, production of oilseeds declined by 13.7 per cent during the 2002-03 Rabi season while cotton and sugarcane also recorded declines of 7.7 per cent and 7.2 per cent, respectively.

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