Economy slows down during 1999-2000

Economy slows down during 1999-2000
PRESS TRUST OF INDIA

New Delhi, June 30: The Indian economy slowed down marginally during 1999-2000 to 6.4 per cent compared to the previous year despite an upward revision from the earlier estimated GDP growth of 5.9 per cent. In 1998-99, GDP growth was 6.8 per cent.

According to revised estimates of annual national income, released by the Central Statistical Organisation (CSO), the upward revision in the GDP growth rate for 1999-2000 was mainly due to recovery in the manufacturing and agricultural sector.

The revised growth rate in the manufacturing sector stood at 8.5 per cent during 1999-2000 compared to seven per cent estimated earlier. In 1998-99, the manufacturing sector had posted a growth rate of 3.6 per cent.

Though performance of the agricultural sector remained subdued at 1.3 per cent (revised), it recovered from the 0.8 per cent estimated earlier during 1999-2000.

Agricultural growth remained significantly low compared to 7.2 per cent achieved in 1998-99, CSO figures said.

Other sectors which contributed to the revised GDP growthrate included trade, hotels, transport and communication growing at 6.7 per cent compared to 5.9 per cent estimated earlier, construction at 9.1 per cent as against earlier estimates of nine per cent.

Growth in the sectors -- electricity, gas and water supply and mining and quarrying -- was revised downwards.

Growth in electricity, gas and water supply was revised downward to 7.4 per cent from eight per cent estimated earlier while in mining and quarrying it was revised to 0.3 per cent from 0.4 per cent earlier.

Financing, insurance, real estate and business services grew at 10.6 per cent (revised from 10.5 per cent estimated earlier) as against 6.1 per cent in the previous year, CSO release said.

The community, social and personal services posted a lower growth rate of 10 per cent (revised from 9.8 per cent) in 1999-2000 compared to 10.9 per cent growth achieved in the previous year.

Drop in the GDP growth rate in 1999-2000 to 6.4 per cent (revised) from 6.8 per cent in 1998-99, was mainly due to poor performance in the agricultural sector where the growth declined to 1.3 per cent from 7.2 per cent.

Economic growth during the last quarter of 1999-2000remained stagnant at 7.2 per cent.

The sectors which registered significant growth rates during January-March 2000 over the same period in 1999 included manufacturing at 10.5 per cent compared to 4.2 per cent and mining and quarrying at 2.4 per cent as against a negative 2.1 per cent. However, agriculture posted a negative growth rate of 1.3 per cent compared to 10.8 per cent last year.

The GDP growth rate at current prices was lower at 9.9per cent during 1999-2000 as against 16.5 per cent in the previous year, CSO said.