ECONOMIC SURVEY 1997-98: FARM, INDUSTRY RETARD GDP GROWTH

Article Abstract:

The growth of India's gross domestic product (GDP) has declined by five percent in 1997-98 from 7.5 percent in 1996-97. A fall in the average rate of inflation is also noticed. The inflation rate fell to less than five percent from 6.3 percent during 1996-97. The decline in GDP growth is due to a sharp fall in the growth rate in agriculture and a slowdown in the growth of industry. Agricultural production in 1997-98 is expected to be lower than 1996-97. The production of foodgrains during 1997-98 is pegged at 194.1 million tonnes as against 1993 million tonnes in 1996-97. This is a 2.6 percent decline. Industrial production grew by 4.2 percent in 1997-98 as against a 7.1 percent growth in 1996-97. The mining and electricity sectors recorded meager growth rates of 0.4 percent in mining and .9 percent for electricity in 1996- 97. The slowdown in industrial growth is due to several factors, chief among them being a decline in investment as revealed in the fall in capital goods production and fall in value of imports of capital goods in 1997-98. Other factors include decline in growth of exports and high real interest rates. (uh)

Comment:

India: GDP growth declines by 5% in 1997-98 from 7.5% in 1996-97

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GDP GROWTH FOR '98-99 PUT AT 6.5%, AGRI GROWTH AT 3%

Article Abstract:

India is expecting to achieve a gross domestic product (GDP) growth of about 6.5 percent in 1997-98 (5.1 percent in 1996- 97). The growth in the agriculture sector is expected to be 3 percent (1.5 percent). (gs) --------------------------------------------------------- India's agricultural production (in million tonnes) --------------------------------------------------------- Category 1997-98 1996-97 1995-96 --------------------------------------------------------- Foodgrains 194.10 199.30 180.40 --------------------------------------------------------- Rice 83.50 81.30 77.00 --------------------------------------------------------- Wheat 66.40 69.30 62.10 --------------------------------------------------------- Coarse cereals 31.20 34.30 29.00 --------------------------------------------------------- Pulses 13.10 14.50 12.30 ---------------------------------------------------------

Comment:

India: Country is expecting to achieve gross domestic product growth of about 6.5% in 1997-98, as against 5.1% in 1996-97

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UREA PRICE-HIKE COULD RETARD GROWTH, FEEL PLANTERS

Article Abstract:

The United Planters Association of South India has stated that the government's decision to hike the price of urea by one rupee per kilogram (kg) would reduce consumption of the fertilisers by the plantation industry. Small farmers who are cultivating tea, coffee and rubber are likely to stop using fertilisers. India has set a target of 1,000 million kg of tea and 300,000 tonnes of coffee by 2000. The government has introduced across the board non Modvatable import duty for rubber. This is likely to increase price realisations for rubber. The budget has levied a 8 percent excise cess on rubber. (rk)

Comment:

India: Govt's decision to hike price of urea by 1 rupee per kg will reduce consumption of fertilizers by plantation ind

Market information - general, Fertilizer Manufacturing, Fertilizers

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