Indias national income grew by a record 7.5 per cent in 1996-97, improving on the previous record of 7.2 per cent achieved in 1995-96.
The estimates for gross domestic product (GDP) at factor cost and 1980-81 prices show that the government has scaled up the growth rate for 1996-97 sharply from the previously estimated level of 6.8 per cent (based on advance estimates). The GDP at constant (1980-81) prices in 1996-97 is estimated at Rs 296,845 crore, against Rs 276,132 crore during the previous year.
The upward revision is largely on account of an unprecedented spurt of 7.9 per cent in the agriculture sector in 1996-97, as per revised estimates released by the Central Statistical Organisation. Advance estimates had projected just 3.7 per cent growth in this sector.
Further, the data reveals that the country has hit a new growth trajectory with respect to savings, with the rate of increase of gross domestic savings at a new high of 26.1 per cent compared with the previous high of 25.3 per cent recorded in 1995-96.
Sectorally, the rate of growth was 7.9 per cent for the agriculture sector, 10.6 per cent for manufacturing and 8.7 per cent for financing and insurance within the services sector.
Agricultural production during 1996-97 has registered a growth of 6 per cent, mainly on account of increase in the production of wheat by 10 per cent, coarse cereals by 16 per cent, pulses by 10 per cent, oilseeds by 12 per cent and cotton by 9 per cent.
The per capita income in real terms improved marginally and is estimated at Rs 2,761 for 1996-97 against Rs 2,608 in the previous year, an increase of 5.9 per cent. Per capita income at current prices is estimated at Rs 10,771 in 1996-97, against Rs 9,578 for the previous year.
Gross domestic saving (GDS) at current prices in 1996-97 amounted to Rs 333,816 crore, against Rs 283,003 crore in 1995-96, constituting 26.1 per cent of GDP at market prices, against 25.3 per cent in the previous year.
The rise in GDS has been contributed by the household and corporate sectors, while the public sectors savings declined.
The household sectors financial savings surged from Rs 95, 715 crore in 1995-96 to Rs 136,644 crore in 1996-97 an increase of 43 per cent. In the same period, savings in physical assets went up from Rs 114,702 crore to Rs 122,899 crore respectively
The private corporate sectors savings rose 4.5 per cent from Rs 47,391 crore in 1995-96 to Rs 49,545 crore in 1996-97.
The public sectors savings declined 1.9 per cent from Rs 25,195 crore in 1995-96 to Rs 24,728 crore in 1996-97. The decrease in the public sectors savings is due to increased dissaving of government administrative departments.
Gross capital formation at constant 1980-81 prices increased from Rs 84,548 crore in 1995-96 to Rs 91,325 crore in 1996-97.
The rate of capital formation in 1995-96 and 1996-97 is higher than the rate of saving because of positive net capital inflow of Rs 20,780 crore in 1995-96 and Rs. 14,669 crore in 1996-97.
