Ficci projects GDP growth rate at 5.4%

BS Corporate Bureau

The Federation of Indian Chambers of Commerce and Industry has projected a gross domestic product growth rate of 5.4 per cent during 2001-2002, which is higher than the 4 per cent growth rate achieved during 2000-2001.

Releasing a report titled 'Current State of the Indian Economy', Ficci said a higher GDP growth would be achieved despite the slump in the global economy. "Higher GDP growth during 2001-2002 is mainly because of the increase in output in the agriculture and services sectors," the report said.

The report said the agricultural sector was expected to witness 5.7 per cent growth during 2001-2002 as against a 0.2 per cent decline in agricultural output reported during the previous year.

"The services sector growth rate is also expected to go up to 6.5 per cent during 2001-2002 as against a 4.8 per cent growth during 2000-2001," the report said quoting figures from the National Statistical Organisation's projection.

However, the report projected a decline in industrial growth to 3.3 per cent in 2001-2002 as against a 6.3 per cent growth in the previous year. "The decline is attributed to slower growth in the manufacturing and construction sectors," the Ficci report said.

On the foreign exchange front, the report said the reserves had gone up by $7.3 billion to $49.6 billion in the first 10 months of the current fiscal. "Current trends indicate that total foreign exchange reserves may go up by around $9-10 billion to around $52-53 billion in the fiscal year 2001-2002," the report said.

It also said the foreign direct investments of $2.36 billion in the first eight months of the current fiscal, had crossed the figure achieved during 2000-2001.

"If the current trends are sustained in the remaining four months, total FDI during 2001-2002 will go up over the previous record of $3.6 billion achieved in 1997-98," the Ficci report said.

The report said there had not been any 'significant' improvement in the savings and investment rates.

According to latest figures, the savings rate had gone up marginally from 23.2 per cent of the GDP in 1999-2000 to 23.4 per cent of the GDP during 2000-2001 and investment rates had dropped from 24.3 per cent to 24 per cent of the GDP.

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