New Delhi: GDP growth rate estimation of below 7 percent in FY 2011-12 has increased worries of the government. Criticized for delay in action, the government is under pressure to handle the issue of slowdown in economy.  The Finance Minister will be under pressure to present few announcements in the coming 2012-13 budget to expedite the slowdown in economy. It is clear from the current GDP growth estimation that, the government will have to focus more on manufacturing, mining and agriculture sector.

On Tuesday, the government has released the GDP growth rate estimation figures for current fiscal. According to this, economy is expected to grow by 6.9 percent in the current fiscal. However, in the last FY it was 8.4 percent.  GDP growth rate has come below 7 percent for the first time since 2009-10. With the slowdown in global economy and higher interest rates, manufacturing sector has badly suffered in growth race.

Similarly mining sector growth rate has suffered negative. Agriculture sector growth rate has been halved as compared to the last year’s figure. According to the statistics of central statistics organizations, agriculture sector growth rate will come down to mere 2.5 percent in the current fiscal whereas in last year it was 7 percent. Manufacturing sector’s growth rate is estimated to be 3.9 percent in current FY whereas it was 7.6% in last year.

CSO’s estimation is lesser than RBI’s estimation. In the quarterly review of monetary policy by central bank last month, they had estimated GDP growth rate to be 7 percent. The Finance Minister Pranab Mukherjee had indicated that growth rate may fall below 7 percent.  In the half-yearly economic review, the government had revised growth rate to 7.5 percent. Current estimation is very low in comparison to  the target of 9 percent in current FY.

The government had estimated a GDP growth rate of 9% in the review held just before last year’s budget. The government has agreed about slowdown in last six months of current fiscal. Growth rate was 7.3 percent from April to September 2011. Mining production is expected to go down by 2.2 percent from last year. Construction sector growth rate is estimated to come down to 4.8%. Finance, Insurance, Real Estate, and Services sector will experience slump in the growth rate.    
 
(JPN/Bureau)