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Resource centre on India's rural distress
 
 

GDP estimates show worst may be over

-The Hindu


Agriculture and allied sectors show improvement

The Central Statistical Office (CSO) released on Friday estimates of 2013-14 Gross Domestic Product (GDP) growth, pegging it at 4.9 per cent. In 2012-13, the economy grew at 4.5 per cent, the lowest in a decade.

GDP

Since the growth during the April-September 2013 was 4.6 per cent, a full-year CSO estimate of 4.9 per cent implies that the economy is expected to grow at just under 5.4 per cent during the second half of 2013-14. The estimate, therefore, shows the worst may be over and the economy will bounce back in the second half of the current fiscal - something that the UPA government has been stating. Prime Minister Manmohan Singh said in his press conference last year that "India's own growth momentum will revive."

The pick-up has come mainly from the Agriculture, forestry and fishery sectors that the CSO estimates will grow at 4.6 per cent, against 1.4 per cent last fiscal.

Also, the services sector, including finance, insurance, real estate and business services, is estimated to grow at 11.2 per cent, compared with 10.9 per cent in 2012-13. Electricity, gas and water production is estimated to grow at 6 per cent, up from 2.3 per cent last fiscal.

The CSO estimates project a contraction during the current fiscal in the manufacturing sector.