India: Economy records close to 7 pc growth in 200405

India: Economy records close to 7 pc growth in 2004-05

Friday, February 25, 2005

India News: New Delhi, President APJ Abdul Kalam on Friday told a joint Parliament session that the country's economy has grown by seven percent in the year to March 2005,

Addressing the joint session of upper and lower houses of parliament on the opening day of the budget session, Kalam said the economy showed a robust growth mainly on the back of excellent performances by manufacturing and services sectors.

Kalam said the gross domestic product growth of close to seven percent was despite delayed monsoons.

"On top of a year of record growth in 2003-04, which was based largely on a recovery from the previous year's poor growth, the economy is once again poised to record close to seven per cent growth in 2004-05, despite a weaker monsoon and higher oil prices. The revival of investment activity and an increase in the rate of capital formation have contributed to an annual growth in 2004-05 of 8.9 per cent in manufacturing output and 8.9 per cent in services sector incomes. Despite a modest 1.1 per cent growth in agricultural production on account of a weak monsoon, food prices have been under check," Kalam said.

The government had vowed to pursue economic reforms to enable India's economy to grow at seven to eight percent on a sustained basis over the next decade. On buttuming office in May last year, Prime Minister Manmohan Singh had said that the government was working on a comprehensive plan to encourage private investment to boost growth in the Indian economy, already amongst the fastest growing in the world.

Analysts say, although India is growing at a fast clip, higher growth is hobbled by creaking infrastructure including poor roads, clogged ports and an ageing rail network. The government has set up a panel to monitor the progress of key infrastructure projects and vowed to end what he called the tyranny of "inspector raj" to enable Indian industry to compete without any bureaucratic interference. (ANI)