Indian economy to grow 6.9 percent

By agencies   |   Monday, 07 February 2005, 20:30 IST
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NEW DELHI: Indian economy is expected to grow at a lower pace of 6.9 percent during the current fiscal and the per capita income of world's fourth largest economy will grow by 11.1 percent. According to advance estimates of national income released today by the Central Statistical Organization, the lower pace was projected due to a lower farm output on which the country’s economy depends much. The government institution has projected a mere 1.1 percent rise in the output of agriculture, forestry and fishing sectors during the current fiscal year, as against a massive 9.6 percent growth last fiscal. However manufacturing sector will record a higher growth projection of 8.9 percent compared with 6.9 percent in 2003-04. Even the services sector is expected to grow at 6 percent in 2004-05, compared with 5.8 percent in the previous year, the data suggested. Among other sectors, construction activity is expected to grow by 5.7 percent (7.0 percent in 2003-04), trade, hotels and transport by 11.3 percent (11.8 percent) and finance, insurance and real estate by 7.1 percent (7.1 percent). The statistics further suggest that the per capita income will expand to 23,308 ($517.96) in the current fiscal, as against 20,989 ($466.42) for 2003-04, showing a rise of 11.1 per cent. This is on a projected population of 1.091 billion, as against 1.073 billion at the end of the previous fiscal year. The net national product at factor cost will grow by seven percent to 13.54 trillion ($300.88 billion) during 2004-05, as against the previous year's estimate of 12.66 trillion ($281.33 billion). On the other hand, the net national product at current prices is anticipated to grow 12.9 percent to 25.43 trillion ($565.10 billion) in 2004-05, compared with 22.52 trillion ($500.40 billion) in the previous year. The gross domestic product at factor cost is projected to grow 12.6 percent to attain a level of 28.38 trillion ($630.60 billion) against 25.20 trillion (560 billion) in 2003-04. The advance estimates are based on anticipated level of farm and industrial output, analysis of budget estimates of government expenditure and performance of sectors like, railways, transport, communication, banking and insurance.