New Delhi: A robust farm growth of 5.2 per cent in the March quarter pushed GDP growth up to 7.1 per cent. However, growth in the sector was lower than the previous quarter’s expansion of 6.9 per cent.
Farm growth for the full fiscal zoomed to 4.9 per cent because of good rainfall and record food-grain production compared with a near flat 0.7 per cent expansion in 2015-16.
Earlier this month, the agriculture ministry had released its third advance estimates for agriculture production in the 2016-17 crop year (July-June).
"The volume, spatial and temporal distribution of the monsoon in 2017 would be crucial in determining kharif sowing and production dynamics. Following the record-high growth of most crops in 2016-17, our baseline expectation is that growth of agricultural GVA would moderate appreciably in 2017-18 from 4.9 per cent in 2016-17," Aditi Nayar, principal economist with ICRA, said.
According to the data, rice production is estimated at a record 109.15 million tonnes, wheat at a record 97.44mt and pulses at an all-time high of 22.40mt.
Coarse cereal production is estimated to be a record 44.39mt in 2016-17 against 38.52mt last year. The foodgrain basket comprises rice, wheat, coarse cereals and pulses.
"As a result of very good rainfall during monsoon 2016 and various policy initiatives taken by the government, the country has witnessed record foodgrain production in the current year," the ministry had said.
With the Met department forecasting a normal monsoon this year, the government is expecting to break last year’s record foodgrain production.
"While GDP numbers are subdued we believe that this was expected after demonetisation. We do not expect demonetisation impact to spill over in 2017-18 as multiple sectors are showing signs of recovery as well as a positive thrust from the normal monsoon," Vaibhav Agrawal, head of research, Angel Broking, said.
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