The Hindu Business Line : Poor harvest, reforms impact hit Bengal's industrial growth

INDUSTRIAL growth was sluggish in West Bengal for most part of 2003-04 partly on account of the poor harvest in 2002-03 and partly because of the adverse impact of liberalisation, according to a report on the State economy published in the 2003-04 Economic Review.

The review, quoting advance estimates, pegged the growth of the State domestic product at 7.6 per cent in 2003-04.

The report said that the old labour-intensive industries in the State (which are now either closed or not doing well) have a high weightage in the official index of industrial production.

The stagnation in traditional industries, such as jute, cotton and textiles, had a disproportionate effect on the index, which has not been able to capture the increase in industrial production in several new units set up in the State in recent years.

The report said that efforts were being made to make the official index of production more representative of industrial production dynamics in the State.

Referring to the agriculture sector, the Economic Review said that in terms of weather, 2002-03 was a bad agricultural year. Area as well as the output of the kharif, aus and aman crops was affected. The yield rate of total foodgrains declined from 2,424 kg per hectare to 2,374 kg in 2002-03.

The review said that although the 2003-04 monsoon was not entirely favourable for the State, agricultural production had picked up, more so compared to the low base of 2002-03.

The report also noted the sharp deterioration in the State's financial position,saying that steps have been taken to augment revenue on the one hand while reducing expenditure on the other. The State has also taken a slew of measures to increase non-tax revenues by enhancing royalty on minerals, toll rates on bridges and revising excise licence fees.

More Stories on : Economy | Agriculture | Other States

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page