Economy

Farm sector to drive 8.6% growth this fiscal

Our Bureau New Delhi | Updated on February 07, 2011 Published on February 07, 2011

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The Indian economy is expected to grow 8.6 per cent during 2010-11 against 8 per cent in the previous fiscal. The higher growth rate ? according to the advance estimates of national income, released by the Central Statistics Office here on Monday ? is mainly due to a better agricultural performance on the back of continued buoyancy in industry and services.

The farm sector's growth is seen to recover to 5.4 per cent, compared with the drought-impacted 0.4 per cent level of 2009-10. While manufacturing will grow at the same rate (8.8 per cent), the construction, ?trade, hotels, transport and communication' and ?financing, insurance, real estate and business services' sub-sectors are projected to register acceleration.

On the other hand, ?mining and quarrying', ?electricity, gas and water supply' and ?community, social and personal services' are slated to post lower growth.

The overall positive story on growth is, however, tempered by concerns over inflation. This is partly reflected in the huge difference between growth in gross domestic product (GDP) at current market prices (18.3 per cent) and that at constant prices (8.6 per cent).

The investment rate ? gross fixed capital formation as a ratio of GDP at current prices ? is also set to fall from 30.8 per cent to 29.3 per cent in 2010-11.

GDP for 2010-11 at current market prices is projected at Rs 72,56,571 crore or almost $1.6 trillion at Rs 45.5-to-the-dollar. Net national income ? income accruing to the country's residents from domestic as well as foreign sources after deducting for depreciation ? is estimated at Rs 64,66,860 crore, which, for a population of 118.6 crore, translates into a ?per capita income' of Rs 54,527.

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Published on February 07, 2011
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