NEW DELHI: India has revised downward the economic growth for fiscal 2011-12 to 6.2 per cent from the earlier estimate of 6.5 per cent. However, as per the first revised estimates of National Income, Consumption Expenditure, Saving and Capital Formation, the Gross Domestic Product (GDP) for the fiscal 2010-11 has been revised upwards to 9.3 per cent from 8.4 per cent.
“GDP at factor cost at constant (2004-05) prices in 2011-12 is estimated at Rs52,43,582 crore as against Rs49,37,006 crore in 2010-11, registering a growth of 6.2 per cent during the year as against a growth of 9.3 per cent in the year 2010-11,” the estimates showed.
The estimates were released by the Central Statistics Office (CSO), Ministry of Statistics and Programme Implementation for 2011-12, along with second revised estimates for the year 2010-11 and third revised estimates for 2009-10.
At current prices, CSO said, GDP in 2011-12 is estimated at Rs83,53,495 crore as against Rs72,66,967 crore in 2010-11, showing an increase of 15 per cent, as against an increase of 19 per cent in the previous fiscal.
The CSO said that the per capita income in real terms (at 2004-05 prices), is estimated at Rs 38,037 for 2011-12 as against Rs 36,342 in 2010-11, registering an increase of 4.7 per cent during the year, as against an increase of 7.2 per cent during the previous year.
The per capita income at current prices is estimated at Rs 61,564 in 2011-12 as against Rs 54,151 for the previous year depicting a growth of 13.7 per cent, as against an increase of 17.1 per cent during the previous year.
The data further further said that the growth in the GDP during 2011-12 has been achieved due to expansion in financing, insurance, real estate and business services (11.7 per cent), transport, storage and communication (8.4 per cent), electricity, gas and water supply (6.5 per cent) and trade, hotels and restaurants (6.2 per cent).
Meanwhile, ignoring slash in key policy rates, both the Sensex and Nifty ended at a 3-week low after the Reserve Bank of India projected a lower economic growth for current fiscal and concerned over the widening the twin deficit. Contraction in the world’s largest economy, US, for the fourth quarter announced by the US Commerce Department late on Wednesday also weighed on the domestic markets.
RBI’s draft guidelines on banking provisioning needs inspite of cutting lending rates and tepid earnings by some major corporates too later impacted negatively on the market. RBI on Tuesday announced a cut in short-term lending rates, after nine months, and cash reserve ratio (CRR) by 0.25 per cent respectively. The cut in CRR will infuse additional Rs18,000 crore in the banking system.
After a knee-jerk reaction to the cut in the lending rates, the Bombay Stock Exchange 30-share barometer initially logged a fresh over two-year high of 20,203.66. Later, it succumbed with heavy selling as the rate cut was already discounted as per market participants. It got a further jolt when the RBI cut its GDP forecast to 5.5 pct for the current fiscal, from 5.8 pct projected earlier and also showed concern over the widening the fiscal as well as trade deficit.
The sensex later nosedived to end the week below 20,000 level at 19,781.19 on profit selling at existing higher levels mainly in capital goods, refinery, auto and tech stocks, a net fall of 322.34 points or 1.60 per cent. The NSE 50-share Nifty also dropped by 75.75 points or 1.25 per cent to close below 6K level at three-week low of 5,998.90.
Press Trust of India