GDP estimates for 2018-19: Agricultural growth rate in India to be minus (--) 0.1%, worst in 10 yrs

By A Representative
The State Bank of India (SBI) has estimated that agricultural growth would turn into the negative in the fiscal 2018-19. In its latest report by the SBI’s research desk, headed by Dr Soumya Kanti Ghosh, Group Chief Economic Adviser, says that agriculture and allied activities “is likely to grow at 3.8% in FY19 as against previous year growth of 3.4%, would be “primarily due to growth in allied activities (livestock, forestry and fishing).”
However, it adds, “The most striking fact is that agriculture deflator for FY19 at –0.1% is lowest in 10 years indicating continued distress (or low demand) in rural areas.” SBI’s GDP growth rates (year on year per cent) is at constant prices, with 2011-12 as the base year.
The SBI’s GDP growth advance estimates for FY19 is “a conservative 7.2%, lower than RBI’s projection of 7.4%”, the report states, adding, “Manufacturing, electricity, gas, water supply and other utility services, construction are the major contributors to the overall growth.”
It says, “Industry is estimated to grow at 7.8% in FY19 as compared to 5.5% in FY18 due to better performance of all the sub-sectors, except mining and quarrying.” However, it adds, “Service sector growth is likely to come in at 7.3% in FY19, compared to 7.9% in FY18.”

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