India's Largest Database on New Projects
January
31, 2007: The government revised the gross domestic product (GDP) growth
rate for 2005-06 from 8.4 per cent to 9 per cent, mainly to account for a 54 per
cent revision in agricultural growth from 3.9 to 6 per cent, in its quick
estimates for the fiscal. The revised figures augur well for 2006-07, although
it may have its impact on growth figures this year, which was mentioned by the
Finance Minister.
A
higher GDP base for 2005-06 could lower the 9.1 per cent growth estimates for
the first half of 2006-07. Another notable factor is the increase in the
estimates for savings from 31.1 per cent of GDP to 32.4 per cent. Gross capital
formation also improved from 30.2 per cent to 32.2 per cent during the period.
The unexpectedly good showing by agriculture in 2005-06 to higher foodgrain
output and sustained high growth in allied sectors such as animal husbandry,
fisheries and forestry. The latter’s share in the agricultural GDP is now
higher than that of crops.
Foodgrain
output grew by about 5 per cent to cross 208 million tonnes, with rice output
surging to its highest level since 2001-02. Wheat production of 69.48 million
tonnes, though below average, was higher than the previous year’s 68.6 million
tonnes. The year 2005-06 also saw bumper harvests for commercial crops. Such crops impact
the GDP numbers more than foodgrain because of their higher prices. The oilseed
harvest during the year peaked at 27.7 million tonnes, against 24.3 million
tonnes in the previous year. Among other commercial crops, cotton and sugarcane
hit production records.
Source:
Business Standard