BUSINESS

Economy grows at 4 p.c.

NEW DELHI JAN. 31. Official news has now come from the Central Statistical Organisation (CSO) that the economy grew only at four per cent during 2000-01 against a 6.1 per cent growth during the previous year. On the positive side is the information that the gross domestic savings worked out to 23.4 per cent during 2000-01, up marginally from 23.2 per cent recorded in the previous year.

As per the quick estimates of national income released by the CSO, the gross domestic product (GDP) at factor cost at constant (1993-94) prices in 2000-01 was estimated to be Rs. 11,93,922 crores against Rs. 11,48,500 crores during 1999-2000. At current prices, the GDP was estimated to be Rs. 18,95,843 crores against Rs. 17,55,638 crores during the previous year. At current prices, the GDP grew by eight per cent.

At constant prices, the national income (net national product at factor cost) in 2000-01 was estimated to be Rs. 10,44,915 crores against Rs. 10,07,743 crores in 1999-2000.

The CSO data shows that despite negative growth in agriculture (-0.4 per cent) and banking and insurance (-2.2 per cent), a growth rate of 4.0 per cent in GDP could be achieved because of high growth in manufacturing (6.7 per cent), construction (6.8 per cent), communications (15 per cent), real estate, ownership of dwelling and business services (9 per cent) and other services (7.4 per cent). The negative growth of 0.4 per cent in agriculture during 2000-01 was mainly on account of decline in the production of rice by 5.4 per cent, wheat by 10 per cent, pulses by 20.4 per cent, oilseeds by 11.2 per cent and cotton by 16.3 per cent as compared to the previous year.

The per capita income in real terms, that is at 1993-94 prices, was estimated to be Rs. 10,254 for 2000-01 against Rs. 10,067 in 1999-2000, which represents an increase of 1.9 per cent. The per capita income at current prices was estimated to be Rs. 16,487 in 2000-01 against Rs. 15,562 for the previous year, an increase of 5.9 per cent.

On the savings front, gross domestic savings in 2000-01 were estimated to be Rs. 4,88,328 crores against Rs. 4,47,188 crores during the previous year, constituting 23.4 per cent of the GDP at market prices against 23.2 per cent in the previous year. The increase in savings has been contributed mainly by the household and the private corporate sector, but there has been a steep fall in the savings of the public sector. In the household sector, savings in the form of financial and physical assets have gone up from Rs. 2,07,538 crores and Rs. 1,85,094 crores in 1999-2000 to Rs. 2,28,862 crores and Rs. 2,07,604 crores, respectively, in 2000-01.

The CSO data also shows that private final consumption expenditure (PFCE) in the domestic market at current prices works out to Rs. 13,40,962 crores in 2000-01 against Rs. 12,65,349 crores in the previous year. The per capita PFCE in 2000-01 works out to Rs. 13,160 at current prices and Rs. 7,960 at constant prices, up from Rs. 12,641 and Rs. 7,929, respectively, for 1999-2000.

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