India sticks to fiscal 2003 growth target in mid-year review
Tuesday, 03 December 2002, 20:30 IST
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NEW DELHI: The Indian government has retained the economic growth target at between 5 and 5.5 percent in the current fiscal year in its first mid-year review of the country's economy. "Growth project for the current year continue to be between five and 5.5 percent," said the mid-year review report presented in Parliament by the finance ministry Tuesday. The government's review of the economy had been expected to lower the economic growth forecast for the year ending March 2003, with the worst drought to hit India in three decades likely to severely dent agriculture sector output. Agriculture is crucial to the country's economy as it accounts for about a quarter of the GDP (gross domestic product). Rainfall in the country was 24 percent lower than normal in the annual monsoon season. Even though the monsoon revived towards the end of the season, the country continues to feel the impact of the drought. India's economy grew by 5.4 percent in the year ended March 31, 2002, compared to a meagre four-percent growth logged a year earlier. "Prospects for the current year appear brighter than the initial, rather subdued, estimates that followed the immediate aftermath of a seriously deficient monsoon," said the review report. "Low inflation, strong export growth, and satisfactory industrial performance in recent months continue to be sources of strength," it added. The government, however, said any adverse developments like intensification of conflict in the Middle East and delays in recovery of world trade would "impart uncertainty about the growth prospects of the Indian economy in current year". The report said critical areas like accelerating structural reforms, improving infrastructure, making continuous progress in fiscal consolidation and accelerating investment would have to be addressed to achieve higher growth.
Source: IANS
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