Rediff Logo Business Exim Banner Ad
Find/Feedback/Site Index
HOME | BUSINESS | NEWS
May 4, 1998

COMMENTARY
INTERVIEWS
SPECIALS
CHAT
ARCHIVES

RBI predicts lower GDP, national income

Send this story to a friend

The real national income is estimated to show a lower growth rate of 4.9 per cent in 1997-98 along with an estimated fall in real gross domestic product from 7.5 per cent in 1996-97 to 5 per cent in 1997-98, according to a study made by the Reserve Bank of India.

Based on quick estimates released by the Central Statistical Organisation, the study says the GDP fall is primarily on account of a negative growth originating from agriculture and allied activities from 7.9 per cent to a negative two per cent.

Accordingly, the study placed the per capita real national income at Rs 2,847 with a lower growth of 3.1 per cent.

Among other sectors which have experienced deceleration in their growth are manufacturing -- from 7.4 to 6.1 per cent, construction -- from 5.2 to 3.2 per cent, and service sector -- from 8.6 to 5.9 per cent. On the whole, in 1997-98, the shares of industry and services in GDP have moved up to 27 and 48.6 per cent respectively along with a decline in the share of agriculture and allied activities to 24.4 per cent.

The step-up in the rate of gross domestic saving in 1996-97 is attributable to a sharp rise in the rate of household sector savings in financial assets to 10.7 per cent of GDP from 8.6 per cent of GDP in 1995-96. The increase was primarily due to a large accretion to bank deposits.

However, there was a decline in the rates of savings of all its other components such as household sector physical saving, public sector saving and private sector saving.

In 1996-97, the rate of GDS reached an all-time high of 26.1 per cent as the rate of gross domestic capital formation adjusted for errors and omissions moved from 27.1 to 27.3 per cent.

UNI

Tell us what you think of this report
HOME | NEWS | BUSINESS | CRICKET | MOVIES | CHAT
INFOTECH | TRAVEL | LIFE/STYLE | FREEDOM | FEEDBACK