CSO estimates 6 p.c. GDP growth in Q2

By Our Special Correspondent

NEW DELHI, DEC. 31. The Indian economy grew at the rate of six per cent during July-September this year, the Central Statistical Organisation (CSO) has said.

Data for the second quarter of the current financial year released by the CSO today reveal that the gross domestic product (GDP) at constant prices (1993-94 prices) was estimated to be Rs. 256,922 crores against Rs. 242,491 crores in the corresponding period last year. This reflects a six per cent growth. The economy had grown at the rate of 5.9 per cent in the first quarter.

According to CSO, the sectors that registered a significant growth in July-September were manufacturing (7 per cent), electricity, gas and water supply (10 per cent), construction (8 per cent), trade, hotels, transport and communication (7.4 per cent), financing, insurance, real estate and business services (8.6 per cent) and community, social and personal services (5.2 per cent). The growth rate in agriculture, forestry and fishing was placed at 1.8 per cent and mining and quarrying at 0.4 per cent in the second quarter.

The CSO has also revised the estimates of GDP for the first quarter. According to revised figures, the GDP has been placed at Rs. 275,960 crores (against the initial estimate of Rs. 274,066 crores) and the growth rate has been revised to 5.9 per cent against the initial estimate of 5.5 per cent.

Quoting statistics provided by the Department of Agriculture and Cooperation, the CSO has also said production of rice and pulses during the kharif season of 1999-2000 was expected to show a growth rate of 2.6 per cent and 7.9 per cent, respectively, over the production during the corresponding period last year. However, production of coarse cereals is expected to decline by 11.7 per cent during this year's kharif as compared to the same period last year. Among commercial crops, while production of oilseeds is expected to decline by 25.3 per cent during this kharif, that of sugarcane is expected to register a growth rate of 3.1 per cent.

On the industrial front, the Index of Industrial Production (IIP) showed that mining, manufacturing and electricity registered growth rates of 2.1 per cent, 7.3 per cent and 11.1 per cent, respectively, during July-September 1999 as compared with a negative growth of 0.5 per cent, positive rate of 3.9 per cent and 4.6 per cent in the corresponding period in 1998. The key indicators of the construction sector, namely, cement and finished steel, registered growth rates of 16.5 per cent and 7.2 per cent, respectively, during the second quarter of 1999.

The CSO estimate of GDP for July-September at current prices has been placed at Rs. 390,026 crores as against Rs. 357,153 crores in the second quarter of 1998, showing an increase of 9.2 per cent.

The revised estimate for the April-June 1999 period has been put at Rs. 414,792 crores against the earlier estimate of Rs. 411,835 crores, showing an increase of 14.5 per cent.

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