Agri sector’s share in GDP declines while others grow

Our Corporate Bureau

New Delhi, Nov 5: Despite ten consecutive favourable monsoons, there has been a sharp deceleration in the contribution of agriculture to the Gross Domestic Product (GDP) at constant prices during the last two years while services, internal trade and insurance and real estate continue to show high growth rates ranging from eight per cent to 10 per cent.

According to an analysis carried out by the Associated Chambers of Commerce and Industry of India (Assocham), while in the first quarter of the current year, agriculture, forestry and fishing registered an increase of 2.3 per cent in its contribution to the GDP compared to 0.6 per cent increase in the first quarter of 2000-2001, trade, hotels, transport and communication witnessed a 5.2 per cent increase compared with 9.7 per cent in the first quarter of 2000-01.

In financing, insurance, real estate and business services, the increase in contribution of the GDP was 9.9 per cent and 9.5 per cent. The chamber study points out that the production of rice, wheat, coarse cereals and pulses during the rabi season ending June 2001-01 declined by 6.9 per cent, 9.4 per cent, 14 per cent and 24.4 per cent over the corresponding season of the previous year.

Among commercial crops, oilseeds and cotton registered a negative growth rate of 22.6 per cent and 19.3 per cent respectively during the rabi of 2000-01, while sugarcane registered a marginal positive growth of 0.4% in production during 2000-01.

Among the services sectors, the key indicators of railways, namely, the net tonne kilometers and passenger kilometers have shown zero per cent growth rate and 12.6 per cent during the first quarter of 2001-02 as against their respective growth rates of seven per cent and 5.9 per cent in the corresponding period of 2000-01.

The other key indicators, production of commercial vehicles, cargo handled at major ports, aggregate bank deposits, bank credits and revenue expenditure of the Central government have shown growth rates of -16.2 per cent, - 5.8 per cent, 18.6 per cent, 12.8 per cent and 14 per cent respectively, during the first quarter of 2001-02, over the first quarter of 2000-01.