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  • Robust farm sector growth lifts GDP to 8.5 per cent in fiscal 2010-11

    Published on May 31, 2011

    Robust farm sector growth helped lift the country’s economic growth, as measured by the Gross Domestic Product, to a healthy 8.5 per cent in the 2010-11 fiscal, compared to 8 per cent growth recorded in 2009-10.

    During the entire 2010-11 fiscal, the agriculture and allied sectors grew by a strong 6.6 per cent, against just 0.4 per cent growth in the earlier fiscal. But manufacturing sector growth slowed to 8.3 per cent, from 8.8 per cent in 2009-10.

    However, poor performance by the manufacturing sector pulled down GDP growth to 7.8 per cent in the fourth quarter ending March 2011, as against 9.4 per cent in the same quarter last year.

    During the quarter ending March 31 2011, growth in the manufacturing sector slowed to 5.5 per cent, from 15.2 per cent in the same quarter of 2009-10. However, farm output growth improved to a strong 7.5 per cent, compared to 1.1 per cent.

    Meanwhile, the GDP growth figure for the first quarter of the 2010-11 fiscal has been revised upward to 9.3 per cent, against the earlier estimate of 8.9 per cent. And the third quarter GDP growth has been revised up to 8.3 per cent, from 8.2 per cent.

    Commenting on the GDP growth data, Finance Minister Pranab Mukherjee said the advance estimate of GDP growth for 2010-11 was 8.6 per cent, and now the revised estimate, at 8.5 percent, is more or less the same. But he also said that growth in the current fiscal would be affected if inflationary pressure continues.

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