Farm, manufacturing push economic growth to 8.9 p.c.

Farm workers engaged in weeding at a paddy field near Palakkad, Kerala. Being an essentially agrarian economy, monsoon plays a strategic role in deciding the growth of the sector. The country has a total of 328.7 million hectare of geographical area of which141million hectares is net cultivated area and of this about 57 million hectare (40%) is irrigated and the remaining 85 million ha. (60%) is rain fed. Rain fed agriculture is characterised by low levels of productivity and low input usage. Crop production is subjected to considerable instability from year to year due to its dependence on rainfall, which is slightly erratic and variant in space and time, according to Government of India's anual report 2010. Digital Picture By K_K_Mustafah.21/06/2010

Driven by good performance of agriculture and manufacturing, the Indian economy grew by 8.9 per cent in the second quarter of the current fiscal, up from 8.7 per cent in the corresponding period a year ago.

The growth rate for the first quarter was revised upwards to 8.9 per cent from 8.8 per cent.

This took the overall economic expansion during the first half (April-September) to 8.9 per cent, up from 7.5 per cent in the corresponding period a year ago.

According to the data released by the government today, farm sector during the second quarter recorded a growth rate of 4.4 per cent, up from 0.9 per cent in the corresponding period a year ago.

The manufacturing sector during the same period recorded a growth rate of 9.8 per cent as compared to 8.4 per cent during the same period last year.

The growth rate in the second quarter exceeds economist expectation of up to 8.6 per cent for the July-September quarter.

Although the government expects the growth to top 8.5 per cent in the current fiscal, it may exceed the estimates if the present trend continues.