Economy grows at 6.78 pc, PCI at ' 41,833

Economy grows at 6.78 pc, PCI at ' 41,833

1 March 2012
The Daily Excelsior
Sanjeev Pargal

Jammu: The growth rate of State’s economy was estimated at 6.78 per cent during ongoing financial year of 2011-12 slightly ahead of 6.63 per cent in the last fiscal of 2010-11. Average annual growth rate of Gross State Domestic Product (GSDP) for 11th financial year plan ending in March this year was estimated at 6.21 per cent, which falls short of 8 per cent target. Presenting pre-budget economic survey in the Legislative Assembly, Finance Minister Abdul Rahim Rather described the growth rate of 6.21 per cent during 11th five year plan as satisfactory on the ground that it was just 5.45 per cent at the end of 10th five year plan. The survey revealed that Jammu and Kashmir had an outstanding debt of ' 31,272 crore comprising internal debt of ' 17835 crore, loans and advances from Central Government ' 2032 crore and other liabilities accounting for under public account ' 11405 crore, which didn’t include the investment of ' 11 crore made in the Calamity Relief Fund. The Finance Minister, however, presented a gloomy picture of growth rate in agriculture and allied sector, which would stand at 2.28 per cent during 2011-12, a little ahead of just 2 per cent in 2010-11. He described the improvement as a healthy sign since agriculture had recorded negative growth rate of 5.37 per cent during 2009-10, the first year of National Conference-Congress coalition Government. However, in the industrial sector, the growth rate marginally increased from 4.46 per cent in 2010-11 to 4.65 per cent in the current financial year, mainly due to improvements in mining and quarrying, electricity, gas and water supply sectors. Construction sector by and large remained stagnant at around 1 per cent growth rate. 'Banking, insurance and public administration sectors were likely to maintain their performance and grow at 11.58 per cent and 15.26 per cent respectively during 2011-12’’, Mr Rather said. However, despite a boom in tourism sector last year with one crore pilgrims visiting holy cave shrine of Mata Vaishno Devi ji and over 10 lakhs in the Kashmir Valley including Amarnath yatris, the growth rate in trade, hotels and restaurant sectors slowed down to 6 per cent in 2011-12 as compared to 8 per cent in 2010-11. 'An analysis of sectoral percentage contribution to GSDP from 2004-05 to 2011-12 indicated a steady decline in percentage contribution of agriculture and allied activities from 28.06 per cent to 19.36 per cent reflecting average annual decline of 1.24 points. The contribution of territory and services sectors stood at 26.41 per cent and 54.23 per cent in 2011-12 as against 28.22 per cent and 43.72 per cent respectively during 2004-05. Major contribution to GSDP for current fiscal is from sectors like public administration (19.74 per cent), agriculture and livestock (15.74 per cent) and construction activity (13.34 per cent)’’, the Finance Minister said. He said that GSDP at constant prices (2004-05) for 2011-12 was estimated at ' 41367.34 crore as against 38738.97 crore in 2010-11. The GSDP at current prices was estimated at ' 62364.80 crore in 2011-12 as against ' 54,731 crore in 2010-11 and was thereby expected to grow at 13.95 per cent. Per capita income of the State at current prices has been worked out at ' 41,833 crore in 2011-12 (measured on the basis of Net State Domestic Product). The per capita income in 2010-11 was ' 27607 crore, Mr Rather said admitting that the State’s per capita income at both current and constant prices was far less than the national average. He said notwithstanding the achievements made with regard to enhancement of literacy rate and enrollment ration, decline in general drop-out rate and percentage of ‘out of school children’, a lot more was required to be done. 'The infrastructure available at elementary and secondary levels was still inadequate, deficient, dilapidated and lacked drinking water and toiled facilities. Increase in enrollment ration followed by reduction-decline in drop-out rate at elementary levels is apt to put more pressure on secondary education system during the forthcoming years and, as such, this aspect was required to be taken into consideration during 12th five year plan period, starting April 1 this year’’, Mr Rather said. The Finance Minister would present the budget on March 5 in the Legislative Assembly.