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New statistics put GDP growth rate for 97-98 at 5 pc

The Central Statistical Organisation today announced in New Delhi a new series for computing national account statistics and pegged the gross domestic product growth rate for 1997-98, the inaugural year of the Ninth Plan, at 5 per cent from earlier estimate of 5.1 per cent. (A variation of one decimal point represents a difference of Rs 16 billion).

Releasing the quick estimates under the new series with 1993-94 as the base year, Dr A C Kulshreshtha, deputy director of national accounts division of the CSO, said that manufacturing, electrical, gas and water supply, trade, hotel and restaurants, communications, banking and insurance and community, social and personal services were the main contributors to the high growth rate.

The revised series captures developments in the post-reform period, he said. It has incorported improvements in the new series of national accounts, there is wider coverage and new activities have been brought under the purview of national income, he said.

He said that a change in the base year from 1980-81 to 1993-94 has been necessitated by a shift in the pattern of national economy. A base year too far back would not reflect the realities of the situation.

At constant (1993-94) prices, the national income in 1997-98 is estimated at Rs 9.26 trillion as against Rs 8.84 trillion in 1996-97, showing a rise of 4.8 per cent during the year. At current prices, the national income in 1997-98 is estimated at Rs 12.65 trillion as compared to Rs 11.40 trillion in 1996-97, showing a rise of 10.9 per cent during the year.

According to the information furnished by the ministry of agriculture, the decline in GDP of agriculture sector is mainly because of steep fall in the production of wheat (5 per cent), coarse cereals (9 per cent), pulses (8 per cent), oilseeds (10 per cent) and cotton (22 per cent) during 1997-98 as compared to the previous year.

Gross capital formation at current prices has increased from Rs 3.61 trillion in 1996-97 to Rs 3.87 trillion in 1997-98 and at constant (1993-94) prices, it increased from Rs 2.85 trillion in 1996-97 to Rs 2.94 trillion in 1997-98. The rate of gross capital formation at current prices has declined from 25.7 per cent in 1996-97 to 24.8 per cent in 1997-98. The rates of capital formation in 1996-97 and 1997-98 are higher than the rate of saving because of the positive net capital inflow from abroad which was Rs 172.96 billion in 1996-97 and Rs 258.59 billion in 1997-98.

UNI

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