India's FY'12 GDP growth revised down to 6.2 per cent

The government has revised India's economic growth figures for fiscal 2011-12 lower at 6.2 per cent from the previous estimate of 6.5 per cent, even as it revised upward GDP growth for fiscal 2010-11 to 9.3 per cent from the 8.4 per cent projected earlier.

The Indian economy is now estimated to have grown at a slower pace of 6.2 per cent in the 2011-12 financial year against a growth of 9.3 per cent recorded in 2010-11, revised estimates (first revision) of national income, consumption, saving and capital formation, released by the Central Statistical Office (CSO) showed.

Gross domestic product (GDP) of the country (at factor cost at constant (2004-05) prices) stood at Rs52,43,582 crore in 2011-12 against Rs49,37,006 crore in 2010-11 – a growth of 6.2 per cent against a growth of 9.3 per cent in the 2010-11 financial year.

At current prices, GDP in 2011-12 is estimated to have grown 15 per cent at Rs83,53,495 crore from Rs72,66,967 crore in 2010-11. GDP at current prices had increased by 19 per cent in the previous financial year.

Gross national income (GNI) of the country at factor cost (at constant (2004-05) prices) showed a growth of 6.4 per cent in 2011-12 at Rs51,96,848 crore from Rs48,82,249 crore in 2010-11. GNI gad shown an increase of 8.8 per cent in the previous financial year.

At current prices, India's GNI in 2011-12 is estimated to have grown by 15.2 per cent to Rs82,76,665 crore from Rs71,85,160 crore in 2010-11 – an increase of 15.2 per cent during the year, as against an increase of 18.4 per cent in the previous year.

The sectors that contributed to the 6.2 per cent GDP growth during 2011-12 included finance, insurance, real estate and business services (11.7 per cent), transport, storage and communication (8.4 per cent), electricity, gas and water supply (6.5 per cent) and trade, hotels and restaurants (6.2 per cent).

The primary sector that includes agriculture, forestry and fishing showed a growth of 3.6 per cent during 2011-12 as against the 7.9 per cent recorded during the year 2010-11. Growth in the secondary sector (manufacturing) was down at 3.5 per cent in 2011-12 against a growth of 9.2 per cent in 2010-11 while the service sector grew at 8.2 per cent during 2011-12 against a growth of 9.8 per cent in the previous fiscal.

GDP at market prices (at constant (2004-05) prices) in 2011-12 is estimated to have grown 6.3 per cent to Rs56,31,379 crore from Rs52,96,108 crore in 2010-11 against a growth of 10.5 per cent in the year 2010-11.

GDP at current prices (market prices) is estimated to have increased by 15.1 per cent to Rs89,74,947 crore in 2011-12 from Rs77,95,314 crore in 2010-11, showing an increase of 15.1 per cent during the year, as against an increase of 20.3 per cent in the previous year.

Consumption 
Private final consumption expenditure (PFCE) at constant (2004-05) prices is estimated to have grown to Rs33,34,900 crore in 2011-12 from Rs30,88,880 crore in 2010-11.
PFCE at current prices is estimated at Rs50,56,219 crore in 2011-12 against Rs43,49,889 crore in 2010-11.

PFCE at current and constant (2004-05) prices during 2011-12 are estimated at 56.3 per cent and 59.2 per cent, respectively, as against the corresponding rates of 55.8 per cent and 58.3 per cent, respectively in 2010-11.

Savings
Gross domestic saving (GDS) at current (market) prices in 2011-12 is estimated at Rs27,65,291 crore (30.8 per cent of GDP) against Rs26,51,934 crore (34.0 per cent of GDP) 2010-11. The decrease in the rate of GDS has mainly been due to the decrease in the rates of financial savings of household sector from 10.4 per cent to 8.0 per cent, reflecting the rising inflationary pressure.

Private corporate savings declined from 7.9 per cent in 2010-11 to 7.2 per cent in 2011-12 and that of public sector from 2.6 per cent to 1.3 per cent during the two years.

In absolute terms, household savings increased from Rs18,32,901 crore in 2010-11 to Rs20,03,720 crore in 2011-12, an increase of 9.3 per cent while the saving of the private corporate sector has gone up by 4.1 per cent from Rs6,19,370 crore in 2010-11 to ` Rs6,44,473 crore in 2011-12 .

However, the saving of public sector has gone down by 41.4 per cent from Rs1,99,662 crore in 2010-11 to Rs1,17,097 crore in 2011-12.

Capital formation
Gross domestic capital formation increased from Rs28,71,649 crore in 2010-11 to Rs31,41,465 crore in 2011-12 at current prices and from Rs21,20,377 crore in 2010-11 to Rs21,31,839 crore in 2011-12 at constant (2004-05) prices.

Gross capital formation expanded at 35 per cent at current prices in 2011-12 against the 36.8 per cent increase in 2010-11. Rate of gross capital formation at constant (2004-05) prices declined to 37.9 per cent in 2011-12 from 40.0 per cent in 2010-11.

Per capita income
The per capita net national income (at factor cost in real terms, ie, at 2004-05 prices) is estimated to have increased by 4.7 per cent to Rs38,037 in 2011-12 from Rs36,342 in 2010-11. NNI had recorded an increase of 7.2 per cent during the previous financial year.

The per capita income at current prices is estimated to have increased by 13.7 per cent to Rs61,564 in 2011-12 from Rs54,151 in the previous financial year, against a growth of 17.1 per cent during the previous financial year.

The per capita PFCE at current prices in 2011-12 is estimated at Rs42,065 against Rs36,677 in 2010-11, an increase of 14.7 per cent as against an increase of 15.7 per cent in the previous year. The corresponding estimates at constant (2004-05) prices are Rs27,745 and Rs26,045 - up 6.5 per cent in 2011-12 and up 7.1 per cent in the previous year.