The Central Statistical Organisa- tion (CSO) today lowered the gross domestic product (GDP) growth rate for the previous fiscal to 4 per cent from 5.2 per cent as per the revised estimates released in June 2001.
The economic growth in 2000-01 has touched a low of 4 per cent for the first time since India embarked on the liberalisation programme in 1991. The crisis which forced the government to open up the economy in 1991 had dealt a serious blow to the GDP growth rate in 1991-92 when it dipped to 1.3 per cent.
The fall in GDP growth is mainly on account of a 2.2 per cent fall in value added in the banking and insurance sector instead of growing at around 9 per cent. This has pulled down the growth of the overall financial sector to 2.9 per cent as against 9.1 as per the revised estimates. Economists have found the fall in growth rates inexplicable.