Mid-Year Review of the Indian Economy 2004-2005

The mid-year review of the Indian economy for the current year gives a holistic picture of the Indian economy, its prospects in 2004-2005 and the international trends that influence it. In ascertaining the outlook for economic growth, explicit cognizance is taken of the fast growing and more stable trajectory of growth of the non-agricultural sector, quite separately and distinct from what happens to agriculture. A stronger performance in manufacturing and other industrial sectors is predicted as well as a continuation of the expanding trends in other parts of the services sector. Estimated GDP growth in placed at 6.3 percent. The focus, however, is more on the important role of management of economic policy. The present government is seen as facing a most favourable political situation for successfully implementing its programme for economic reform, as the challenges from the traditional opposition are weak.