MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANANT G. GEETE)
(a) The following table gives the average sectoral real growth
rates in Gross Domestic Product (at factor cost) for the
periods 1980-81 to 1991-92 and 1992-93 to 2001-02:
Average sectoral real growth rates (in per cent) at 1993-94 prices
Sectors 1980-81 to 1991-92 1992-93 to 2001-02
1. Agriculture and 3.9 3.4
Allied
2. Industry 6.3 6.0
3. Services 6.4 7.7
As can be seen from the above table, there had been marginal
Decline in average growth rates of agriculture & allied sectors and industry
in the post-economic reforms period during 1992-93 to 2001-02.
However, the services sector has grown at significantly higher rates
during the post reforms period. The decline in agricultural growth
was attributable to irregular monsoons particularly during the later
part of the 1990s. Overall industrial growth also declined due to
relatively poor performance by industry in later part of the 1990s.
This was attributable to various structural and cyclical factors
like normal business and investment cycles, lack of domestic and
external demand, high real interest rates, infrastructure constraints etc.
The Indian economy was also affected by external shocks (such as the
East Asian crisis of 1998-99, oil prices hike of 2000-01 and the recent
global economic slowdown) and domestic disturbances (such as adverse
security environment and natural disasters like the Orissa Cyclone
and the Gujarat Earthquake).
(b) Government has taken several steps for promoting agricultural
and industrial growth. These include; enhancing public outlay
in agriculture, liberalisation of policies in trade, industry
infrastructure and financial sectors rationalisation of the direct
and indirect tax regimes, reduction of interest rates and other
complementgary macroeconomic policies for promoting sustainable economic growth.
