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Updated: February 1, 2013 03:50 IST

GDP growth for 2011-12 lowered to 6.2 per cent

Special Correspondent
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The government, on Thursday, announced a downward revision in GDP (gross domestic product) growth to 6.2 per cent for fiscal year 2011-12 from the earlier provisional estimate of 6.5 per cent.

Alongside, however, the GDP growth for 2010-11 fiscal stands revised upwards to 9.3 per cent from 8.4 per cent, as per the first revised estimates of ‘National income, consumption expenditure, saving and capital formation’, released here by the Central Statistics Office (CSO) for 2011-12 along with second revised estimates for 2010-11 and the third revised estimates for 2009-10.

“GDP at factor cost at constant (2004-05) prices in 2011-12 is estimated at Rs.52.43 lakh crore as against Rs.49.37 lakh crore in 2010-11, registering a growth of 6.2 per cent during the year as against a growth of 9.3 per cent in the year 2010-11,” a CSO statement said.

As per the statement, the GDP in 2011-12 at current prices is estimated at Rs.83.53 lakh crore as against Rs.72.67 lakh crore in 2010-11, marking an increase of 15 per cent as against an increase of 19 per cent in the previous fiscal year.

The per capita income in real terms (at 2004-05 prices), the CSO said, is estimated at Rs.38,037 for 2011-12 as against Rs.36,342 in 2010-11, which works out to an increase of 4.7 per cent during the fiscal as against an increase of 7.2 per cent in the previous year.

However, the per capita income at current prices is estimated at Rs.61,564 in 2011-12 as against Rs.54,151 in the previous fiscal to mark a lower growth of 13.7 per cent as compared to an increase of 17.1 per cent posted in 2010-11.

Standard of living

As a measure to assess the standard of living, the per capita income on a monthly basis works out to Rs.5,130 during the fiscal as compared to Rs.4,513 in 2010-11.

According to the CSO data, the expansion in GDP during 2011-12 was mainly on account of growth in sectors such as financing, insurance, real estate and business services by11.7 per cent, transport, storage and communication (8.4 per cent), electricity, gas and water supply (6.5 per cent) and trade, hotels and restaurants (6.2 per cent).

As for gross domestic savings (GDS), the growth in 2011-12 at current prices fell to 30.8 per cent of the GDP at market prices and is estimated at Rs.27.65 lakh crore during the year as compared to an increase of 34 per cent to Rs.26.52 lakh crore in 2010-11

Deceleration

The deceleration in GDS growth in 2011-12, the statement said, was mainly owing to declines in household financial savings from 10.4 per cent to 8 per cent, in private corporate sector savings from 7.9 per cent to 7.2 per cent and in public sector savings from 2.6 per cent to 1.3 per cent as compared to a year ago.

Among other major indicators, the gross national income at constant (2004-05) prices and at factor cost in 2011-12 is estimated at Rs.51.97 lakh crore as compared to Rs.48.82 lakh crore in 2010-11, which works out to an increase of 6.4 per cent during the year and marks a decline from the previous year’s growth figure of 8.8 per cent. On the other hand, the GNI at current prices in 2011-12 is estimated at Rs.82.77 lakh crore as compared to Rs.71.85 lakh crore in 2010-11, an increase of 15.2 per cent which is lower than the 18.4 per cent growth achieved in the previous year.

Household sector

Household sector savings in absolute terms, the data showed, increased from Rs.18.33 lakh crore in 2010-11 to Rs.20.04 lakh crore in 2011-12 to pose an increase of 9.3 per cent while private corporate sector savings rose by 4.1 per cent from Rs.6.19 lakh crore in 2010-11 to Rs.6.44 lakh crore in 2011-12.

Savings of the public sector, however, fell by a hefty 41.4 per cent from Rs.1.99 lakh crore in 2010-11 to Rs.1.17 lakh crore in 2011-12.

As per the data, gross domestic capital formation increased from Rs.28.72 lakh crore in 2010-11 to Rs.31.41 lakh crore in 2011-12 at current prices.

At constant prices (2004-05), it increased from Rs.21.20 lakh crore in 2010-11 to Rs.21.32 lakh crore in 2011-12.

Accordingly, the rate of growth of gross capital formation at current prices stood at 35 per cent in 2011-12 as against 36.8 per cent in 2010-11 and at 37.9 per cent and 40.0 per cent during the two years at constant prices.

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