New Delhi, Jan 31 (IANS) The Indian government Tuesday revised economic growth for 2010-11 down to 8.4 percent from the earlier estimate of 8.5 percent.
“The Gross Domestic Product (GDP) at factor cost at constant prices in 2010-11 has registered a growth of 8.4 percent over the previous year,” according to provisional data released by the ministry of statistics and programme implementation here.
The finance ministry said in the current financial year ending March 31, 2012 the economy is likely to expand by around 7 percent.
“The growth achieved during the first half of the current year was 7.3 percent and in the Mid-Year Analysis, we had stated that the economy is going to grow at 7.5 +/- 0.25 percent in the full year,” chief economic adviser Kaushik Basu said at a press conference.
Regarding the outlook for 2012-13, the finance ministry expects the economy to grow faster than the current year but not substantially so.
GDP at factor cost at constant (2004-05) prices in 2010-11 is estimated at Rs.48,85,954 crore, which is 8.4 percent more than the previous year’s Rs.45,07,637 crore.
The GDP had grown by 8 percent in 2009-10.
The major source of growth in the GDP has been from the services sector, which has grown at 9.3 percent.
“The agriculture sector growth has also been impressive at 7 percent during the year 2010-11,” Minister of State for Statistics and Programme Implementation Srikant Kumar Jena said in a statement.
However, the growth in the secondary sector, which includes manufacturing and construction, was at 7.2 percent.
The Gross National Income has registered a growth of 7.9 percent in 2010-11 over the previous year.
The gross domestic savings at current prices in 2010-11 has been estimated at Rs.24.81 lakh crore which constituted 32.3 percent of the country’s GDP at market prices.
The savings rate in 2010-11 has declined from 2009-10. The major reason for the decline is due to decrease in the rates of financial savings of household sector from 12.9 percent to 10 percent and the private corporate sector from 8.2 percent to 7.9 percent.
However, the rate of savings of the public sector has increased to 1.7 percent in 2010-11 as compared to 0.2 percent in the previous year.
The country’s per capita income grew by 15.6 percent to Rs.53,331 in 2010-11 as compared to Rs.46,117 in the previous year, crossing the Rs.50,000-mark for the first time.
However, in real terms based on 2004-05 prices, the per capita income grew by a slower 6.4 percent to Rs.35,993 in 2010-11 as compared to Rs.33,843 in the previous year.
Savings rate was at 32.3 percent in 2010-11 and 33.8 percent in 2009-10 (33.7 percent earlier reported). The decrease mainly owes to decrease in financial savings of household sector.
Gross domestic saving of India, which has over 1.2 billion population, increased by 32.3 percent to Rs.24,81,931 crore in 2010-11 as compared to Rs.21,82,970 crore in the previous year.
The gross domestic capital formation, an indicator of increase in physical assets, rose to Rs.26,92,031 crore in 2010-11 at current prices as compared to Rs.23,63,670 crore in the previous year.
