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CSO released Provisional and Quarterly Estimate of National Income for 2013-14

May 31, 2014 15:39 IST

Central Statistical Organisation (CSO) on 30 May 2014 released the Provisional and Quarterly Estimate of National Income for the financial year 2013-14. It pegged Indian economy’s Gross Domestic Growth (GDP) growth rate at 4.7 percent in 2013-14.

Main highlights

•    Gross Domestic Product (GDP) of India is estimated to grow at 4.7% for 2013-14 against 4.5% in 2012-13. This is the first time in 26 years after 1987-88 that GDP has grown at sub-5% in two successive years.
•    The per capita net national income in real terms during 2013-14 is estimated at 39904 rupees as compared to the 38856 rupees in 2012-13.
•    The growth rate in per capita income is estimated at 2.7 percent during 2013-14 as against 2.1 percent during 2012-13.
•    The rates of GFCF at current and constant (2004-05) prices during 2013-14 are estimated at 28.3 percent and 32.3 percent, respectively. In 2012-13 it was 30.4 percent and 33.9 percent respectively.
•    The GDP growth rate in Quarter 4 of the financial year is estimated to be 4.6%. The Q4’s weak growth was mostly due to weakness in investment, slow credit growth and due to declining growth in Manufacturing and mining sector.
•    In Quarter 4, the growth in manufacturing sector declined at 1.4% as against the growth of 1.6% in Q4 of 2012-13.

Sector wise growth for 2012-13 and 2013-14

Sectors

2012-13 (in percent)

2013-14 (in percent)

Agriculture, forestry & fishing

 

1.4

4.7

Mining & quarrying

-2.2

-1.4

Manufacturing

1.1

-0.7

Electricity, gas & water supply

2.3

5.9

Construction

1.1

1.6

Trade, hotels, transport and

communication

5.1

3.0

Financing, insurance, real estate

& business services

10.9

12.9

Community, social & personal

services

5.3

5.6

Sector wise growth for the Quarter 4 (Q4) of 2013-14

Sector

2013-14 (in percent)

2012-13 (in percent)

Agriculture, forestry and fishing

6.3

 

Mining and quarrying

-0.4

1.1

Manufacturing

-1.4

(-)1.6

Electricity, gas and water

supply

7.2

7.6

Analysis

Indian economy’s growth rate from last two years has been par below the potential. The main reasons are policy logjam, high inflation, business pessimism, inadequate investment, lack of governance and host of other issues. If India have to achieve the pre-crisis growth rate of 8 percent and above, then it has to act on five very urgent issues.

These are listed below

1.     Direct Tax code: One of the surest ways to revive a dwelling economy is to prompt people to spend more through tax breaks. A timeline for introducing Direct Tax Code can be a good first step.
2.    Reforms in Agriculture: Government of India should pay the focus to introduce reforms in agriculture. At least, 25% more farmland can be irrigated if infrastructure, such as feeder canal is built.
3.    Goods and Services Tax: A pan India goods and services tax could save billions of dollars, cut corruption and boost economic growth.
4.    Delhi-Mumbai Industrial Corridor: The Delhi-Mumbai Industrial Corridor and other such projects should be accorded priority as they can potentially spin millions of jobs.
5.    Roads and Projects: Roads and railways projects can create jobs. Households can be financiers to build infrastructure if investment norms are eased for insurance.

Is this article important for exams ? Yes295 People Agreed

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