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India's economic growth to slow down to 6% this fiscal

Hit by deceleration in the services sector and slowdown in manufacturing, Indian economy is estimated to grow by a meagre 6 per cent during the current financial year, down from the 6.4 per cent growth recorded in the previous year.

According to official advance estimates of national income released on Monday, the gross domestic product (GDP) at factor cost is likely to be Rs 12,211.74 billion against quick estimates of Rs 11,519.91 billion for 1999-2000.

The national income is expected to rise by 6.1 per cent during 2000-01, registering a decline from the growth rate of 6.6 per cent in 1999-2000.

Similarly, the per capita income growth is likely to fall to 4.4 per cent against 4.8 per cent during the previous year, according to the estimates released by the Central Statistical Organisation.

Despite good performance in the primary sector of agriculture, mining and quarrying, the GDP growth plummeted largely because of decline in manufacturing sector from 6.8 per cent in 1999-2000 to 6.4 per cent this year.

The growth rate in community, social and personal services dropped to 7.6 per cent from 11.8 per cent, while financing, insurance, real estate and business services registered a growth of 9.6 per cent, down from 10.1 per cent during the previous year.

Trade, hotels, transport and communication remained virtually stagnant with growth in the sector estimated at 8 per cent during the current financial year, same as that in the previous year.

In the agriculture sector, which recorded a growth of 0.9 per cent against 0.7 per cent in 1999-2000, production of rice and coarse cereals has declined by 3.4 per cent and 0.5 per cent respectively during the kharif season of the current fiscal over the corresponding season in previous year.

However, production of pulses has registered a positive growth rate of 11.8 per cent during the 2000-01 kharif season as against the previous year.

Among the commercial crops, oilseeds have registered a negative growth rate of 1.8 per cent during the current year, while production of cotton and sugarcane is expected to register growth rates of 13.1 per cent and 0.5 per cent, respectively, during 2000-01 compared to 1999-2000.

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