Date:09/09/2005 URL: http://www.thehindubusinessline.com/2005/09/09/stories/2005090901681900.htm

Back AP GDP set to rise 7.6 pc

Our Bureau

Hyderabad , Sept. 8

THE Andhra Pradesh's State Domestic Product is set to witness a sharp rise of 7.65 per cent with the agriculture sector propelling the growth supported by impressive performance by the industrial and services sectors.

According to a forecast by the Directorate of Economics and Statistics, the GSDP will be around Rs 1,13,754 crore for the 2005-06 fiscal, as against the updated figure of Rs 1,05,673 crore for 2004-05. This represents an increase of 7.65 per cent, as against a growth rate of 5.75 per cent witnessed during 2004-05.

Reviewing the GSDP estimates, the State Chief Minister, Dr Y.S. Rajasekhara Reddy, on Wednesday took stock of the economic indicators and called upon for sustained efforts in various other sectors.

According to a statement from the Chief Minister's Office, the favourable monsoon this year will pave the way for a comfortable crop, which is significant considering that agriculture is the mainstay of the State's economy having a huge bearing on the overall GSDP.

The average GSDP growth was around 5 per cent since 1995 as against the national average of 5.9 per cent. The projections for the current year thus signify the boom being witnessed in the three crucial sectors — agriculture and allied sectors, industry and services.

According to advance estimates for 2005-06, production of foodgrains is estimated to be 145 lakh tonnes and oilseeds at 23 lakh tonnes. The income from agriculture is likely to be around Rs 14,856 crore, which works out to 13.06 per cent of the GSDP.

With livestock expected to contribute 7.5 per cent, fishing (2.36 per cent) and forestry (0.67 per cent), the overall share of agriculture and allied sectors to the GSDP is projected at 23.59 per cent, an increase of 6.99 per cent over last year.

The income from industry sector comprising mining and quarrying, manufacturing, electricity, gas, water supply and construction is projected at Rs 29,779 crore in 2005-06 as against Rs 27,973 crore in 2004-05. This will mean a growth of 6.46 per cent.

With housing activity receiving a fillip due to State's initiatives, the sub-sector of construction is expected to register a growth of 8.39 per cent while electricity, gas and water supply are likely to reflect an increase of 6.4 per cent.

Income from the services sector covering trade, hotels, restaurants, communications, transport, financing insurance, real estate and business services, is estimated to be Rs 57,142 crore (Rs 52,620 crore). This sector is expected to contribute around 50 per cent to the GSDP.

Within the services sector, the communications sector is poised for 21.2 per cent growth.