Drought hits agri output, GDP dips to 2.6 per cent in Q3

A drastic fall in the agriculture output after the drought has slowed down the growth of the economy in the third quarter of 2002-03 as the GDP posted a growth of only 2.6 per cent.

The GDP during October-December 2002-03 amounted to Rs 3,52,637 crore, which was only 2.6 per cent higher than Rs 3,43,737 crore a year ago.

GDP, which grew by a robust 6.0 per cent in the first quarter followed by 5.8 per cent in the next quarter, could not sustain the growth momentum despite impressive performance of services and manufacturing sectors, figures released by Central Statistical Organisation revealed on Monday.

The aftermath of the worst drought was felt in the third quarter with agriculture output dipping by 7.9 per cent to Rs 90,557 crore. Agriculture, forestry and fishing sectors witnessed no growth during October-December last fiscal. Industrial revival was reflected in a robust 6.3 per cent growth in the manufacturing sector which produced an aggregate Rs 56,902 crore worth of goods during the third quarter, as against a meagre 3.4 per cent in the year ago period. The mining and quarrying sector posted a modest 4.6 per cent growth compared to 3.6 per cent in October-December 2001, while electricity, gas and water supply sector grew by 5.9 per cent during the third quarter compared to 3.4 per cent last year. Services sector grew by over 7.0 per cent during the quarter with financial sector leading the race with 8.1 per cent growth.