New Delhi: India's economic growth remained below the 5 percent mark for the second year in a row at 4.7 percent in 2013-14, but the industry is hopeful of a rebound with a stable government headed by Narendra Modi, considered pro-business.
India's economic growth remained subdued at 4.6 percent in the fourth quarter of 2013-14 and during the entire fiscal, mainly due to a decline in manufacturing and mining output.
As per the data, the economic growth remained below 5 percent for two consecutive years after a gap of almost 25 years. Earlier from 1984-85 to 1987-88, the economic growth rate remained below 5 percent.
"...The ushering in of a stable government, post elections, has revived sentiments and lifted investor confidence which would pave the way for growth. But much more is required to turn around the economy," CII Director General Chandrajit Banerjee.
The forthcoming budget, CII has suggested, should aim at reviving business confidence and giving a fillip to growth. This includes fast-tracking projects, early implementation of GST, bringing a simple, stable and non-adversarial tax regime, doing away with retrospective amendments.
The country's economy, or gross domestic product (GDP), had expanded at 4.5 percent in 2012-13, the slowest pace in the previous decade.
Growth in 2013-14 was less than the Central Statistics Office's (CSO) advance estimate of 4.9 percent. The economy expanded 4.4 percent in fourth quarter of 2012-13, according to official data released here on Friday by the CSO.
The manufacturing sector declined 1.4 percent in the fourth quarter as against growth of 3 percent a year ago and contracted 0.7 percent in the financial year compared to a growth of 1.1 percent in 2012-13.
Mining and quarrying contracted 0.4 percent in the January-March quarter as against a decline of 4.8 percent in the same period of 2012-13. During 2013-14, the sector's output shrank 1.4 percent compared with a 2.2 percent dip in production in 2012-13.
Commenting on the GDP data, FICCI President Sidharth Birla said: "Announcements made by the Prime Minister and his Cabinet Ministers over the last few days leave us with an encouraging outlook, as the governmental actions will definitely have a positive impact on the investment sentiment. Going forward, the emphasis has to be on effective implementation and timely action."
Echoing similar views, PHD Chamber President Sharad Jaipuria said: "Though growth of real GDP at 4.7 percent for 2013-14 is below growth projections given by CSO in its advanced estimates, it is expected to improve in the current financial year 2014-15 as the government is taking significant steps to rejuvenate the economy."
According to data, farm output expanded 6.3 percent in January-March compared with 1.6 percent growth in the same period of 2012-13. The agriculture sector grew 4.7 percent in 2013-14 compared with 1.4 percent in the previous fiscal.
Per capita net national income in real terms (at 2004-05 prices) in 2013-14 is estimated to have attained a level of Rs 39,904 compared with Rs 38,856 in 2012-13.
The growth in per capita income is estimated at 2.7 percent during 2013-14 against 2.1 percent during 2012-13.
Per capita income at current prices during 2013-14 is estimated to have climbed to Rs 74,380 from Rs 67,839 in 2012-13, a rise of 9.6 percent.
Gross Fixed Capital Formation (GFCF), a barometer of investment at current prices, is estimated at Rs 32.11 lakh crore in 2013-14 as against Rs 30.72 lakh crore in 2012-13.
At constant (2004-05) prices, GFCF is estimated at Rs 20 lakh crore in 2013-14 as against Rs 20.02 lakh crore in 2012-13.
According to the CSO data, the construction sector expanded 0.7 percent in January-March as against 2.4 percent in the year-ago period. During 2013-14, the sector grew 1.6 percent compared with 1.1 percent in 2012-13.
Growth in the trade, hotels, transport and communications segment slowed to 3.9 percent in the fourth quarter from 4.8 percent in the same period of 2012-13. In the financial year, it grew at 3 percent compared with 5.1 percent in 2012-13.
The services sector, including financing, insurance and real estate, expanded 12.4 percent in the January-March quarter as against 11.2 percent a year earlier. The segment grew 12.9 percent in 2013-14 compared with 10.9 percent in previous financial year.
The community, social and personal services segment grew 3.3 percent in the last quarter of 2013-14 compared with 2.8 percent in the corresponding period a year earlier. During 2013-14, the segment grew 5.6 percent compared with 5.3 percent previously.
Growth in electricity, gas and water supply was 7.2 percent in Q4 compared with 0.9 percent a year earlier and touched 5.9 percent in 2013-14 compared with 2.3 percent in the previous year.
