India economy grows seven percent
by Brian Turner
India’s economy grew by 7 percent in the fourth quarter of fiscal year 2004/05, putting the Asian nation’s economic growth for the year to 6.9 percent, the figure forecast by the Indian government.
Manufacturing output grew 8.6 percent in the quarter from January to March and growth for the year was 9.2 percent in the sector.
Output growth for the farm sector, however, was substantially below the forecast of 4 percent, at 1.8 percent for the last quarter and 1.1 percent for the year.
The farming sector forms a fifth of India’s GDP and supports 600 million Indians. It has traditionally influenced the entire economy through its demand for manufactured goods.
However, the latest economic figures show that the link between farming incomes in rural areas and industrial activity is weakening due to factors such as greater availability of rural credit, the rise of an affluent middle class, and a growing and successful export market.
Some experts are calling for higher investment in irrigation and moisture retention technologies to help raise farming output by making up for differences in rainfall between weak and strong monsoon years.
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