'India's 8.1 percent growth indicates sound economic health'

Friday, 09 April 2004, 19:30 IST
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NEW DELHI: India's economy is in sound health with an estimated 8.1 percent GDP growth in the 2003-04 fiscal ending March 31 together with expectation of a record foodgrain production of 212.20 million tonnes. In an economic review of the October-December 2003 quarter, the Central Statistical Organisation (CSO) asserted "all the parameters showed that the economy was in sound health". The estimated 8.1 percent GDP growth this fiscal "bears testimony to the emerging fundamental strength and resilience of the economy," it said. During the October-December quarter, India recorded 10.4 percent growth, an all time high, spread across all sectors from agriculture to industries and services. "Agricultural GDP, by growing at 16.9 percent in the third quarter, contributed to the growth upswing. However, a broad-based acceleration in growth from the second to the third quarter was also observed in mining and quarrying, electricity, gas and water supply, trade, hotels, transportation and communication, financing, insurance, real estate and business services," the review said. On account of the widespread and above normal monsoon rainfall in 2003, India is looking forward to the "foodgrain production crossing the peak performance of 212.02 million tonnes to touch 212.20 million tonnes." Even in the case of deficit crops like pulses and oilseeds, India is expecting considerable improvement with record oilseeds production of 24.9 million tonnes, the review stated. While India's exports witnessed slower growth in April-December 2003, at 13.5 percent in dollar terms compared to 18.1 percent in the same period last year, the country's imports surged 24.9 percent, up from 15.1 percent. The review highlights the growing foreign exchange reserves that had reached an all time high of 101.8 billion at the end of December with inflow of $10 billion in the third quarter "indicating the inherent strength of India's balance of payments.
Source: IANS
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