GDP growth rate pegged at 6.4 p.c.

By Our Special Correspondent

NEW DELHI, JUNE 30. There has been a marginal slowdown of the Indian economy to 6.4 per cent in 1999-2000 though this is higher than the earlier estimate of 5.9 per cent. The growth in 1998-99 was 6.8 per cent.

According to the revised estimates of national income for 1999- 2000 released by the Central Statistical Organisation (CSO), the upward revision of the growth rate in gross domestic product (GDP) is largely due to improved performance in the manufacturing and agriculture sectors. As against the initial estimate of 7 per cent, growth in the manufacturing sector is now pegged at 8.5 per cent. The agriculture, forestry and fishing sector also grew by 1.3 per cent as compared to 0.8 per cent estimated earlier.

The CSO data show that the manufacturing sector is growing at a rapid pace compared to 1998-99 when the growth rate was only 3.6 per cent. In contrast, the agriculture sector's growth is much slower as compared to 7.2 per cent in the previous year.

Other sectors that have contributed to the rise in growth in the final estimates are electricity, construction, trade along with hotels, transport and communications, financing along with insurance and real estate and community social and business services.

The GDP at factor cost at constant (1993-94) prices in 1999-2000 is now estimated at Rs. 1151,355 crores as against Rs. 1145,436 crores estimated earlier. In 1998-99, it was estimated at Rs. 10,81,834 crores.

The per capita income in real terms (at 1993-94 prices) in 1999- 2000 is estimated to have reached Rs. 10,207 as against Rs. 10,151 estimated earlier.

Per capita income up

The growth rate in per capita income is estimated at 4.8 per cent as against five per cent in the previous year.

The net national product at factor cost, or national income at 1993-94 prices, is now estimated at Rs. 1011,474 crores against Rs. 1006,005 crores estimated earlier in 1999-2000. The comparable estimate for the previous year is Rs. 949,525 crores. The national income has thus risen by 6.5 per cent compared to 6.8 per cent in 1998-99.

A look at the growth of various sectors compared to the previous year shows that there has been a spurt in the manufacturing and construction industries as well as financing, insurance, real estate and business services. On the other hand, there has been a slowdown in agriculture as well as trade, hotels, transport and communication sectors.

The construction sector has risen by 9.1 per cent compared to 5.7 per cent in 1998-99 while the financing category has grown by 10.6 per cent as against 6.1 per cent earlier. The mining and quarrying sector has also recorded a positive growth of 0.3 per cent compared to a negative growth of 0.5 per cent in 1998-99.

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