Gross Domestic Product growth rate fell sharply to 5.8 per cent in the first quarter of the current year as compared to 6.9 per cent in the same period last year.
The growth rate has fallen due to a decline in the growth rates of the manufacturing, agriculture, construction and services sectors. The quarterly Gross Domestic Product (GDP) estimates released by the Central Statistical Organisation (CSO) yesterday, stated that the quarterly GDP at factor cost at constant prices was Rs 2,86,524 crore in Q1 of 2000-01 as compared to Rs 2,70,732 crore in Q1 of 1999-2000.
The quick estimates for Q1 growth released in September last year had put the GDP growth rate in Q1 of 1999-2000 at 5.5 per cent. This was subsequently revised and brought up to 6.9 per cent. GDP growth in the first quarter of 1999-2000 was powered by manufacturing and services.
This year, however, the growth rate for manufacturing has fallen to 5.5 per cent in Q1 from 6.1 per cent in the corresponding period in 1999-2000. According to the latest estimates of the Index of Industrial Production, the index for manufacturing registered a growth rate of 5.1 per cent in Q1 this year as opposed to 6.7 per cent in the same period last year.
In case of agriculture also, the growth rate fell sharply to 2.5 per cent in 2000-01 from 4.9 per cent in the previous year. Data from the Department of Agriculture and Cooperation show that the production of rice and pulses during the Rabi season of 1999-2000 has declined by 3 per cent and 14.3 per cent respectively. Among commercial crops, oilseeds production declined by 4.5 per cent.
Mining, electricity, and
