GDP growth increases to 6 per cent in July-Sept

GDP growth increases to 6 per cent in July-Sept
ENS ECONOMIC BUREAU

NEW DELHI, DECEMBER 31: Led by a robust growth in manufacturing and construction sectors, the gross domestic product (GDP) rose to 6 per cent in the second quarter of the current financial year (July-September 1999) from 4.2 per cent recorded in the corresponding period last fiscal.

According to the quarterly estimates of GDP released by Central Statistical Organisation (CSO) on Friday, marked improvement was witnessed in case of electricity, financing and insurance, real estate, trade, hotels, transport and communication. The sectors which have continued to perform poorly include mining and quarrying. Agriculture, forestry and fishing, which recorded only moderate performance.

The farm sector output declined by 0.8 per cent in the second quarter of 1998/99. "...Agriculture growth is a cause for concern especially with the news of not very good weather for the rabi crop," said Kamal Sen, director at Anand Rathi Securities.

Bidisha Ganguly, an economist with SSKI Securities, said farm growth could fallfurther. "Farm growth seems to be the main concern and that has dropped significantly from the first quarter. It may fall further in the third quarter because the monsoon was not so good and that could affect the overall GDP growth," said Ganguly.

In the first quarter (April-June 1999), the GDP recorded a growth rate of 5.9 per cent giving firm hopes that the economy would grow by over six per cent in the current fiscal. According to current estimates, the GDP growth rate was likely to cross 6.5 per cent during 1999-2000 as against 5.9 per cent in the last financial year.

The CSO, it may be mentioned, had earlier pegged the GDP growth rate for the first quarter at 5.5 per cent which has been revised upwards to 5.9 per cent. The revision has been mainly on account of improved performance in the agricultural sector for which the figure was revised to 3.2 per cent from 2.8 per cent earlier.

During the second quarter, the electricity sector grew at 10 per cent in July-September compared to 5.5 per centduring the corresponding period last year, while the services segment posted a growth rate of 8.6 per cent as against 4.7 per cent.

Performance of agricultural sector, though improved to 1.8 per cent in the second quarter of 1999-2000 from a minus 0.8 per cent last year. However, it was lower than 3.2 per cent recorded in the first quarter of the fiscal.

Other sectors which recorded significant growth rates during the second quarter were construction posting a growth rate of eight per cent and trade, hotels, transport and communication growing at 7.4 per cent as against 1.7 and 3.3 per cent respectively in the same period last year.

Mining and quarrying continued to be in low growth region at 0.4 per cent in July-September this year as against negative 0.2 per cent last year. According to the information furnished by the department of agriculture and cooperation, which has been used in compiling the estimate of GDP from agriculture in second quarter, the production of rice and pulses during the kharifseason of 1999-2000 was expected to show growth rates of 2.6 and 7.9 per cent respectively over the corresponding season in the previous year.

However, production of coarse cereals is expected to decline by 11.7 per cent during this kharif season over the corresponding season in the previous year. Among the commercial crops, while the production of oilseeds is expected to decline by 25.8 per cent during this kharif season over the production in the corresponding period last year, that of sugarcane is expected to register a growth rate of 3.1 per cent during this year over estimates of the previous year, CSO figures pointed out.

186 cos down shutter in '98-99
NEW DELHI, DEC 31: A total of 186 companies were wound up during fiscal 1998-99 while 357 companies were declared defunct, according to the annual report on the Working and Administration of the Companies Act, 1956.

The report, tabled by Union Minister for Law, Justice and Company Affairs Ram Jethmalani in both the Houses of Parliament inthe just-concluded winter session, said 5,087 companies were in liquidation as on March 31, 1999 as against 5,145 companies on March 31, 1998.

The report said 357 companies were declared defunct and their names struck off the registers maintained by the registrars of the companies under Section 560 of the Companies Act.

During the period under review, 128 companies were taken into liquidation and 186 finally wound up, the report said. Of the 5,087 companies under liquidation, 1,576 companies were under members' voluntary winding up.