Government lowers GDP growth estimate for 2012-13 to 5%
As per latest official estimates of Central Statistical Organization (CSO), the GDP growth of India in the current fiscal has declined to 5% which is much lower than previous estimates by the RBI, the Finance Ministry and IMF. The fall in growth, which is at lowest in last 10 years, is due to poor performance of manufacturing, agriculture and services sectors.
The previous low at 4% was registered in 2002-03. Since then the Indian economy has been growing at over 6%, the highest rate being 9.6% in 2006-07.
CSO’s advance estimate lowered the growth in agriculture and allied activities to 1.8% in 2012-13, compared to 3.6% 2011-12. Manufacturing growth is also expected to drop to 1.9% in this fiscal, from 2.7% in 2011.
India’s GDP growth projections by other agencies for current fiscal 2012-13:
- As per the RBI: 5.5%
- As per the Finance Ministry: 5.7 to 5.9%
- As per the IMF: 5.4%