ECONOMY Goss domestic product growth drops to 5.8% Our Economy Bureau in New Delhi
A sharp decline in growth rates in the agricultural sector pushed down the rate in growth of gross domestic product to 5.8 per cent during the third quarter of 1999-2000, against 7.8 per cent in the same period of 1998-99.
The GDP at factor cost at constant prices of 1993-94, for the third quarter was estimated at Rs 3,13,838 crore against Rs 2,96,739 crore in the same period last year.
The average GDP growth in the first three quarters is 5.9 per cent, which is exactly the figure projected for the entire year.
The decline in GDP was mainly on account of the poor performance of the agricultural sector, where growth rates fell from 9.9 per cent in October-December 1998-99 to 0.5 per cent in the same period of 1999-2000.
According to quarterly estimates of GDP released by the Central Statistical Organisation (CSO), the manufacturing and construction sectors registered higher growth rates of 7.2 per cent and 10.6 per cent, respectively, during the quarter, compared to 2.9 per cent and 2.7 per cent in the previous year.
Other sectors, which registered significant growth in the third quarter are electricity, gas and water supply at 8.6 per cent, financing, insurance, real estate and business services at 10.4 per cent and community, social and personal services at 13.1 per cent.
GDP growth in first two quarters of 1999-2000 was 5.9 and 6 per cent as against 5.4 and 5.5 per cent respectively in the previous year.
The performance of the mining and quarrying sector continued to be sluggish at 0.1 per cent in the third quarter, against 1.5 per cent in the corresponding period of 1998-99, while trade, hotels, transport and communications grew at 5.9 per cent, down from 10.1 per cent in the previous year.
According to the information furnished by the department of agriculture and cooperation, the production of rice during the rabi season of 1999-2000 is expected to decline by 12.7 per cent, over the corresponding seasons in the previous year.
In the kharif season, rice had registered a growth rate of 5.8 per cent.
The production of wheat during 1999-2000 is also expected to decline by 1 per cent over its estimated production during the previous year. Production of coarse cereals is expected to rise by 15.7 per cent during the rabi season against a decline of 12.2 per cent in the kharif season. Pulses production, which had declined by 4.1 per cent during the kharif season of 1999-2000, is expected to decline by 10.8 per cent in the rabi season.
Oilseed production is expected to grow by 5 per cent in the rabi season, opposed to a 25.5 per cent decline in the kharif season. Sugarcane and cotton are expected to show negative growth of 1 per cent and 14.2 per cent respectively during this year.
According to the estimates of the index of industrial production, the index of mining, manufacturing and electricity registered negative growth rates of 0.5 per cent, 8.4 per cent and 7.7 per cent respectively, compared to a negative 1.4 per cent, 3.5 per cent and 5.4 per cent in these sectors in the third quarter of 1998-99.
The key indicators of the construction sector, namely cement and finished steel, registered growth rates of 11.4 per cent and 11.2 per cent respectively during October-December 1999 against the growth rates of 3.1 per cent and negative 4.1 per cent during the same period of 1998.