Tiger Continues to Crawl, Grows Below 5%
By ENS Economic Bureau | Published: 31st May 2014 02:35 AM |
NEW DELHI: India’s economy grew marginally to 4.7 per cent in 2013-14 and at 4.6 per cent in the fourth or the last quarter of the financial year because of a sharp decline in manufacturing and mining output.
However, the landslide victory of Narendra Modi led BJP has stoked hopes of an investment led revival of the Indian economy in the present fiscal.
The Indian economy grew slower than an official estimate of 4.9 per cent but higher than the decade low of 4.5 per cent that was recorded in 2012-13. This is the second straight year when the Indian economy has registered a below 5 per cent growth.
The economy expanded 4.4 per cent in the fourth quarter (January-March) of 2012-13, according to official data released by the Central Statistics Office (CSO) on Friday.
According to official data, manufacturing sector declined 1.4 per cent in the fourth quarter as against growth of 3 per cent a year ago and contracted 0.7 per cent in the financial year compared with growth of 1.1 per cent in 2012-13.
Mining and quarrying that have been the pulling the economy down contracted 0.4 per cent in the January-March quarter as against a decline of 4.8 per cent in the same period of 2012-13. The sector's output shrank 1.4 per cent compared with a 2.2 per cent dip in production in 2012-13.
The better news, however, has come from the farm sector where output expanded 6.3 per cent in January-March compared with 1.6 per cent growth in same period of 2012-13.
The agriculture sector grew 4.7 per cent in 2013-14 compared with 1.4 per cent in the previous financial year.
Per capita net national income in real terms (at 2004-05 prices) in 2013-14 is estimated to have attained a level of Rs 39,904, compared with Rs 38,856 in 2012-13.
The growth in per capita income is estimated at 2.7 per cent in 2013-14 against 2.1 per cent in 2012-13. Per capita income at current prices in 2013-14 is estimated to have climbed to Rs 74,380 from Rs 67,839 in 2012-13, a rise of 9.6 per cent.
Gross Fixed Capital Formation (GFCF), a barometer of investment at current prices, is estimated at Rs 32.11 lakh crore in 2013-14 as against Rs 30.72 lakh crore in 2012-13.
At constant (2004-05) prices, GFCF is estimated at Rs 20 lakh crore in 2013-14 as against Rs 20.02 lakh crore in 2012-13.
According to the CSO data, the construction sector expanded 0.7 per cent in January-March as against 2.4 per cent in the year-ago period. During 2013-14, the sector grew 1.6 per cent compared with 1.1 per cent in 2012-13.
The services sector, including financing, insurance and real estate, expanded 12.4 per cent in the January-March quarter as against 11.2 per cent a year earlier. The segment grew 12.9 per cent in 2013-14 compared with 10.9 per cent in previous financial year.