New Delhi, July 3: The growth in real Gross Domestic
Product (GDP) at factor cost has declined from 9 per cent in
2007-08 fiscal to 6.7 per cent in 2008-09, the government said
today.
The Central Statistical Organisation had released the
figures as per the revised estimates for last fiscal, Finance
Minister Pranab Mukherjee told Lok Sabha in a written reply.
The sector-wise growth of GDP (factor cost at constant
1999-2000 prices) in agriculture, forestry and fishing in
2007-08 was 4.9 per cent, but declined to 1.6 per cent in
2008-09. Industry witnessed a growth of 8.1 per cent in
2007-08, but it reduced to 3.9 per cent in 2008-09.
The GDP growth also declined in manufacturing;
electricity, gas and water supply; construction; services;
trade, hotels, transport and communication; and financial,
insurance, real estate and business services, he said.
However, it witnessed a higher growth rate of 13.1 per
cent last fiscal, compared to 6.8 per cent the previous year
in community, social and personal services, and from 3.3 per
cent to 3.6 per cent respectively in mining and quarrying
sector.
"The lower growth in GDP in 2008-09 could be attributed
to subdued demand conditions, global economic crisis, risk
aversion, caution in extension of credit facilities and due to
agricultural production being influenced by the vagaries of
nature," Mukherjee said.
He also said the global financial crisis impacted the
domestic economy initially through reversal of portfolio
capital flow, which had knock-on effect on the stock market
and the exchange rates through creating supply-demand
imbalance.
"Exports were adversely affected and witnessed negative
growth rate since October 2008, on account of global
recessionary conditions. The growth rate of Indian economy, as
a result, slowed down to 6.7 per cent during 2008-09 as
against 9 per cent the previous year," he said.
However, he said, the effect of recession had been
minimal on the economy vis-a-vis most other countries.
"An unimpaired financial system, large domestic market
and fiscal and monetary stimulus packages have been
responsible for the resilience exhibited by the Indian economy
against the adverse impact of global economic slowdown," he
added.
Bureau Report