The Hindu Business Line : AP farm sector boosts GSDP

Hyderabad, Sept. 14 Improved performance by the farm sector in Andhra Pradesh has boosted the overall State Gross Domestic Product (GSDP) during the first quarter this fiscal (2007-2008).

This indicates that the State economy has caught up with the national trend over the last two years, according to the State Finance Minister, Mr K. Rosaiah.

For the first quarter ended April 2007, the GSDP growth is estimated at 9.64 per cent, compared with 9.34 per cent for the country.

Attributing the growth to improved performance by the agriculture sector, Mr Rosaiah said, “The State was determined to accord top priority to agriculture sector. We believe that agriculture is not merely a sector contributing to a certain percentage of economy but essentially determines the well-being and prosperity of over 60 per cent of the population in the State.”

The industrial growth was at 8.23 per cent and services was up 10.77 per cent and reflects a healthy trend, keeping in tune with the national averages, he said.

The Finance Minister explained that the State provided for improved allocation to sectors such as irrigation and these have been yielding good results. From approved outlay of Rs 12,790 crore in 2004-2005, this has been increased to Rs 15,650 crore (2005-2006), Rs 20,000 crore (2006-2007) and to Rs 30,500 crore (2007-2008).

“The performance of the State also positions it ahead of several other States in the country across various parameters and we expect to continue this trend by laying thrust on agriculture and irrigation sectors,” he explained.

If the State passed through a phase of uncertainty during 1995-2002, some of the initiatives to bring about mid-course correction have yielded good results.

This can be gauged from actual growth of 7.01 per cent during the Tenth Plan (2002-2007) as against previous average of about 5-6 per cent, he said.

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