The Hindu Business Line : Slowdown may force AP to record lower growth rate of 8.5%

Hyderabad, Nov. 26 Even as the Planning Commission forecast a lesser growth rate at 7 per cent for the economy for the financial year following the global meltdown, the Andhra Pradesh Government too is in the process of revising the growth rate.

The State, which registered a record growth rate of 10.63 per cent last year far surpassing the national average, is likely to close the year at 8.5 per cent.

On Wednesday, Mr Montek Singh Ahluwalia, Deputy Chairman of Planning Commission, was reported as stating that the growth rate could be about 7 per cent nationally.

“Keeping in mind the slowdown in the global economy, we cannot expect last year’s record this year. We may achieve 8.5 per cent, 1-1.5 percentage points higher than the national average,” Mr D.A. Somayajulu, Advisor (Economic Affairs and Policy Implementation) to the State Government, told Business Line.

Accordingly, the forecasts for agricultural and allied sectors too would come down. “The growth rate of this sector might come down to 6 per cent from 8 per cent last year. This too would top the national average which is likely to be at 4 per cent,” he said.

The agriculture sector (barring animal husbandry and fisheries segments) alone grew at 10 per cent last year. “Huge expenditure on irrigation facilities and expansion of credit base from Rs 16,000 crore in 2004-05 to Rs 43,000 crore helped the sector out-beat the national average,” Mr Somayajulu, who is also the Deputy Chairman of Agriculture Technology Mission, said.

Animal husbandry and fisheries segments contributed to 40 per cent to the total agriculture sector against 25 per cent nationally.

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