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GDP to grow by 7.13% in FY04, 8% difficult sans reform: NCAER
New Delhi, Oct 12: National Council of Applied Economic Research (NCAER) has warned that 8.0 per cent average economic growth would be difficult to achieve during the Tenth Plan without reforms but said GDP growth could average 7.05 per cent during 2003-08.
New Delhi, Oct 12: National Council of Applied Economic Research (NCAER) has warned that 8.0 per cent average economic growth would be difficult to achieve during the Tenth Plan without reforms but said GDP growth could average 7.05 per cent during 2003-08.
"The medium term perspective shows that it is difficult
to achieve the targeted growth of 8.0 per cent without
reforms....Average GDP growth for 2003-04 and 2007-08 is
expected to be 7.05 per cent," NCAER said in its quarterly
review of the economy.
The economic think-tank, however, revised its growth projection for this fiscal to 7.13 per cent from its earlier estimate of 5.8-6.0 per cent.
"In 2003-04, GDP is estimated to grow at 7.13 per cent. Agriculture and service emerge as the major drivers of growth," it said.
With uniform and good rainfall, prospects of robust growth in agriculture have revived expectations of strong GDP growth, NCAER said, adding "agriculture is estimated to grow by 7.05 per cent over last year's decline of 3.1 per cent".
Services sector, comprising trade, financial services, business services and public administration, is expected to tick 8.01 per cent growth, it said.
NCAER also indicated that industry too is expected to grow by over 6.0 per cent.
"Infrastructure comprising electricity, gas, water supply, transport, storage and communication, is expected to grow at 6.54 per cent. Manufacturing is expected to grow at 6.21 per cent and mining and construction at 5.89 per cent," it said.
The economic think-tank, however, revised its growth projection for this fiscal to 7.13 per cent from its earlier estimate of 5.8-6.0 per cent.
"In 2003-04, GDP is estimated to grow at 7.13 per cent. Agriculture and service emerge as the major drivers of growth," it said.
With uniform and good rainfall, prospects of robust growth in agriculture have revived expectations of strong GDP growth, NCAER said, adding "agriculture is estimated to grow by 7.05 per cent over last year's decline of 3.1 per cent".
Services sector, comprising trade, financial services, business services and public administration, is expected to tick 8.01 per cent growth, it said.
NCAER also indicated that industry too is expected to grow by over 6.0 per cent.
"Infrastructure comprising electricity, gas, water supply, transport, storage and communication, is expected to grow at 6.54 per cent. Manufacturing is expected to grow at 6.21 per cent and mining and construction at 5.89 per cent," it said.
Bureau Report