The Central Statistics Office (CSO) on 7 February 2013 revealed that the economic growth of India is estimated to fall to 5 percent in 2012-2013 financial year, which is a lowest figure in 10 years. A fall in the economic growth is because of the poor performance of the services, agriculture and manufacturing sectors.
The Central Statistics Office (CSO) in its advance forecast of the national income chopped off the gross domestic product (GDP) growth estimate to 5 percent for financial year which will end on 31 March 2013. This is much less than the GDP of 6.2 percent in 2011-2012 financial year. This is said to be the worst performance of economy of India since 2002-2003 when the economic growth was 4 percent.
The major share of India’s GDP comes from the services sector. The services sector is estimated to record a growth of 5.2 percent in 2012-2013 fiscal year against 7 percent of 2011-2012 fiscal year.
As far as the industry sector is concerned, it is expected that the growth would decrease to 1.9 percent in 2012-2013 FY. The farm sector growth will fall down to 1.8 percent.
It is important to note that the official projection of the economic growth of India is much lower than budgetary estimate as well as projections of the central bank of India and other organisations. In the union budget for financial year 2012-2013 which was presented in March 2012, the government pegged India’s economic growth at 7.6 percent.
Also in the quarterly monetary policy review which took place in the first week of February 2013, the Reserve Bank of India projected the growth of 5.5 percent for 2012-2013 financial year. In the meanwhile, Finance Minister P. Chidambaram had projected the economic growth of 5.7 percent.
In first half of 2012-2013 FY, the economy of India grew by 5.4 percent. However, as per the latest estimate, the growth would be around 4.6 percent in second half of 2012-2013.
Industry bodies in the meanwhile asked the government to press for the reform process in order to revive the economic growth.