CSO Projects GDP Growth of 7.2% in Current Fiscal
In spite of contraction in farm production, the government has estimated the economic growth of 7.2 per cent in financial year 2009-10 against 6.7 per cent of previous year, said media reports.
It should be noted that this GDP figure for the current fiscal which has been projected by the Central Statistical Organisation, is lower than what Reserve Bank and the Finance Ministry have forecast.
In its mid-term economic review, the Finance Ministry estimated the GDP growth of 7.75 per cent while the RBI, in its quarterly monetary police review last month, projected a growth of 7.5 per cent.
Nonetheless, the economy is expected to grow at a higher speed in the second half than seven per cent in the first half, said reports.
The released data projected shrinkage in agriculture and allied activities by 0.2 per cent in the current fiscal as against 1.6 per cent a year ago, said reports.
Reports said that the projected growth this fiscal is likely to be driven by 8.9 per cent expansion in the manufacturing sector against 3.2 per cent a year ago.
It may be mentioned that this sector had got various stimulus doses from the government in the wake of the global financial crisis.
According to the advanced estimates, mining and quarrying is likely to grow by 8.7 per cent compared with 1.6 per cent a year ago, while electricity, gas and water supply by 8.2 per cent against 3.9 per cent, said reports.
In trade, hotel, transport and communication sector, a growth of 8.3 was projected as against 7.6 per cent last year, with construction likely to grow at 6.5 per cent from 5.9 per cent in last fiscal, said reports.
However, financing, insurance, real estate and business services are likely witness fall in expansion and grow by 9.9 per cent this fiscal against 10.1 per cent last fiscal and community social and personal services by 8.2 per cent compared with 13.9 per cent.
Advanced estimates are released before the end of a fiscal year to enable the government estimate various figures like fiscal deficit in the Budget.
(Based on internet reports)
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