(a) whether a report on Growth savings and investments prepared by RBI has noted that domestic industry`s contribution to the GDP growth
declined to 18 per cent in 2003-2004 from 34 per cent in preceding year; and
(b) if so, the details and Government`s reaction thereto?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI S.S. PALANIMANICKAM)
(a) & (b) The Reserve Bank of India (RBI) in its report on
`Macroeconomic and Monetary Developments in 2003-04` issued with
the `Annual Policy Statement for 2004-05` on May 18, 2004 has
indicated that the industry`s contribution to the growth of real
Gross Domestic Product (GDP) declined to 18 per cent in 2003-04
from 34 per cent in the preceding year. The industry sector
(comprising mining and quarrying, manufacturing, electricity,
gas and water supply), recorded a higher growth of 6.8 per cent
in 2003-04 compared with 6.2 per cent in 2002-03. The decline in
the contribution of industry sector in 2003-04, despite a higher
growth is mainly attributable to a significant improvement in the
contribution of agriculture and allied activities from a negative
31.4 per cent in 2002-03 on account of drought to 24.2 per cent
in 2003-04. The relative contribution of a specific sector to the
growth of GDP depends not only on its own performance but also on
the performance of other sectors.