Farm output shortfall to hit GDP: FICCI
India`s economy is expected to grow between 5.2-5.8 percent in 2009-10, much lower than last year as the agriculture output is estimated to decline significantly because of drought.
New Delhi: India`s economy is expected to
grow between 5.2-5.8 percent in 2009-10, much lower than last
year as the agriculture output is estimated to decline
significantly because of drought in 276 districts of the
country, an industry paper has said.
The GDP projections for the current fiscal made by the
Federation of Indian Chambers of Commerce and Industry (FICCI)
are far dismal than the estimates of 6 percent by the Reserve
Bank of India and 6.3 percent by the Planning Commission.
Its projections are close to the assessment made by the
International Monetary Fund about the Indian economy.
According to the IMF, India`s GDP is expected to grow by 5.4
percent in 2009.
Below normal rain to the extent of 20 percent this year,
the worst in 37 years, has led to drought in 44 per cent of
India`s 626 districts, FICCI said.
"The overall Kharif output is expected to dip by 15 percent and this may translate into a lower GDP of 5.2-5.8 percent versus 6.7 percent last year," it said adding the agriculture output may drop by 2-4 percent.
Quoting the U S Department of Agriculture, FICCI said
India`s rice output is expected to fall sharply to 82 million
tonnes in 2009-10 against an early forecast of 88 million
tonnes. This would be 17 million tonnes below to 2008-09
production of 99.2 million tonnes.