GENERAL REVIEW

• According to data for 2001-02, released by the Central Statistical Organisation (CSO) on January 31, 2003, Gross Domestic Product (GDP) at factor cost at constant 1993-94 prices grew at 5.6 percent in 2001-02, as against 5.4 percent projected in February 2002. The higher growth estimate for 2001-02 is particularly significant as it comes against the backdrop of a revised estimate of a more moderate growth deceleration for 2000-01 than originally apprehended. In 2000-01, GDP at factor cost at constant 1993-94 prices grew at 4.4 percent, as against the previous estimate of 4.0 percent.
  
  
• Foreign currency assets at end-March 2002 amounted to US $51.05 billion, up by US $11.5 billion over US $39.5 billion at end-March 2001. Out of this increase, a large part (US $9.10 billion) was realized during the second half of 2001-02. Reserve accretion accelerated in the first three quarters of the current financial year, with foreign exchange reserves reaching a record high of US $73.58 billion at the end of January 2003, with an increase of US $19.47 billion over the level of end-March 2002.
  
  
• The money multiplier - the ratio of broad money (M3) to reserve money - which had increased from 4.3 to 4.4 in the previous year, increased further to 4.8 as on January 10, 2003. In the current financial year up to January 10, 2003, broad money grew at 9.8 percent (net of merger of ICICI and ICICI Bank) as compared with 11.2 percent in the corresponding period of last year. The year-on-year growth in M3, as on January 10, 2003, amounted to 12.8 percent (net of mergers) compared with 14.5 percent last year.
  
  
• Private final consumption expenditure, at constant 1993-94 prices, increased by Rs. 48,275 crore or 5.9 percent in 2001-02, compared to a rise of only 5.6 percent in GDP at factor cost at constant prices. Private final consumption expenditure as a proportion of GDP at market prices - both at constant prices - increased from 62.2 percent in 2000-01 to 62.5 percent in 2001-02.
  
  
• The share of food, beverage and tobacco in overall consumption at constant prices, which had steadily declined from 54.8 percent in 1993-94 to just about 48.1 percent in 2000-01, improved to 48.8 percent in 2001-02. The increase was largely due to a more than one percentage point increase in the share of expenditure on cereals. Among other major categories of consumption, expenditure on medical and health care services rose by 0.3 percentage points.
  
  
• In 2001-02, gross and net domestic savings at current prices, grew by 11.8 percent and 13.3 percent respectively, to increase their share in GDP at market prices. Gross (net) domestic savings, as a proportion of GDP (NNP) at market prices, improved to 24.0 (16.0) percent in 2001-02, from 23.4 (15.4) percent in 2000-01.
  
  
• The share of services in GDP has gone up by 12.8 percentage points from 36 percent in 1980 to 48.8 percent in 2001.
  
  
• A robust performance by agriculture (5.7 percent) was instrumental in the acceleration of GDP growth by more than one percentage point in 2001-02.
  
  
• Industry has experienced a significant revival, with IIP growth of 5.3 percent in April-November 2002-03. This has been a broad-based recovery, comprising of 5.7 percent in mining and quarrying, 5.4 percent in manufacturing and 4 percent in electricity. The two key elements which led this growth were capital goods, which grew by 9.9 percent, and consumer non-durables, which had growth of 12.7 percent.
  
  
• The textile industry is a key area where India has an opportunity for labour-intensive exports. Textile products showed a strong growth of 14.8 percent in April-November 2002. A key element of this growth was an increase of 11.6 percent in exports of readymade garments in dollar terms.
  
  
• Gems and jewellery, which since 1998-99 has had a share of 16-20 percent in the total exports of the country, registered a buoyant growth of 28.6 percent in April-October 2002, relative to a decline of 12.2 percent in April-October, 2001.
  
  
• The decline in this year's projected foodgrain production to 183.2 million tonnes compared to last year's output of 212 million tonnes, (13.6 percent fall) is large.