Estimates of GDP by Economic Activity for the First Quarter of Current Fiscal

Quarterly GDP at factor cost at constant (1999-2000) prices for Q1 of 2007-08 is estimated at Rs 7,23,132 crore, as against Rs. 6,61,335 crore in Q1 of 2006-07, showing a growth rate of 9.3 per cent over the corresponding quarter of previous year.

The economic activities which registered significant growth in Q1 of 2007-08 over Q1 of 2006-07 are, manufacturing, electricity, gas & water supply, construction, trade, hotels, transport and communication, financing, insurance, real estate and business services, and community, social and personal services.

According to the information furnished by the Department of Agriculture and Cooperation (DAC), which has been used in compiling the estimate of GDP from agriculture in Q1 of 2007-08, the crops rice, wheat, coarse cereals and pulses during the Rabi season (which ended in June, 2007) of 2006-07 recorded growth rates of (-) 6.4 per cent, 8.0 per cent, 17.1 per cent, and 11.4 per cent, respectively over the corresponding season in the previous agriculture year. Among the commercial crops, the production of oilseeds declined by 11.3 per cent during the rabi season of 2006-07, while the production of cotton and sugarcane recorded growth rates of 22.7 per cent and 22.8 per cent, respectively during the agriculture year 2006-07.

According to the latest estimates available on the Index of Industrial Production (IIP), the index of mining, manufacturing and electricity, registered growth rates of 3.2 per cent, 11.9 per cent and 8.3 per cent, respectively during Q1 of 2007-08, as compared to the growth rates of 3.6 per cent, 11.7 per cent and 5.3 per cent in these sectors during Q1 of 2006-07. The key indicators of construction sector, namely, cement and finished steel registered growth rates of 6.8 per cent and 7.7 per cent, respectively during Q1 of 2007-08, as against the growth rates of 10.2 per cent and 10.3 per cent, respectively in Q1 of 2006-07.

Among the services sectors, the key indicators of railways, namely, the net tonne kilometers and passenger kilometers have shown growth rates of 2.6 per cent and 5.1 per cent, respectively during Q1 of 2007-08. In the transport and communication sectors, the production of commercial vehicles, cargo handled at major ports, cargo handled by the civil aviation, passengers handled by the civil aviation and the total stock of telephone connections (including WLL and cellular) registered growth rates of 6.6 per cent, 14.3 per cent, 11.6 per cent, 21.8 per cent and 47.0 per cent, respectively during Q1 of 2007-08 over Q1 of 2006-07. The other key indicators, namely, aggregate bank deposits, and bank credits have shown growth rates of 26.1 per cent, and 25.9 per cent, respectively during Q1 of 2007-08 over Q1 of 2006-07.

Source: The Press Note of PIB dated 31-08-2007