GDP growth in 2004-05 slips to 6.9% from 8.5%

Agriculture growth plummets to 1.1% from 9.6% in last fiscal

Poor performance in agriculture pulled down the country's economic growth to 6.9 per cent during 2004-05 against 8.5 per cent in the previous fiscal year, according to data released by the Central Statistical Organisation (CSO) today.

Although the manufacturing sector grew at an impressive 9.2 per cent, growth in agriculture plummeted to 1.1 per cent during 2004-05 against a robust growth of 9.6 per cent during 2003-04, mainly on account of poor rainfall during the sowing season.

In the National Development Council meeting earlier this week, Prime Minister Manmohan Singh had asked states to accord top priority to correcting the agriculture strategy on account of the economy's inability to achieve the eight per cent growth target set for the Tenth Plan period.

The "trade, hotels, transport and communication" industry continued to register double-digit growth of 11.4 per cent. This is marginally lower than 11.8 per cent registered during 2003-04.

Performance of the "financing, insurance, real estate and business service" industry remained unchanged, growing at 7.1 per cent during 2004-05.

The CSO estimates showed that the GDP growth rate during the last quarter of 2004-05 stood at 7 per cent against 6.4 per cent during the third quarter of 2004-05.

The January-March quarter for 2004-05 showed a marginal improvement in agriculture which grew at 1.8 per cent against a negative 0.5 per cent growth during the third quarter of 2004-05.

The GDP at factor cost during 2004-05 stood at Rs 15,29,408 crore against Rs 14,30,548 crore during 2003-04 and 13,18,362 crore during 2002-03, according to the revised estimates of CSO.

The revised estimates for gross national product (GNP) at factor cost for fiscal year 2004-05 stood at Rs 15,19,479 crore against Rs 14,22,479 crore (quick estimates) during 2003-04.

National income for the fiscal 2004-05, rose to Rs 13,54,999 crore against Rs 12,66,005 crore (quick estimates) during the previous fiscal.