1.41 The second
advance estimates of crop production released by the
Directorate of Economics and Statistics, Department of
Agriculture and Cooperation on February 5, 2007 has placed
total foodgrains production in 2006-07 at 209.2 million tonnes,
which is marginally higher than the production of 208.6
million tonnes in 2005-06. Production of wheat and pulses is
expected to increase by 4.5 per cent and 8.2 per cent,
respectively. Production of commercial crops is expected to be
significantly higher. Production of cotton expected at 21.0
million bales is not only up 13.5 per cent from 2005-06, but
also an all-time record. Similarly, sugarcane production
projected at 315.5 million tonnes is up 16.8 per cent from the
output of 270.0 million tonnes in 2005-06. Output of coarse
grains and oilseeds are likely to be lower than their levels
in 2005-06 by 6.2 per cent and 15.7 per cent, respectively.
Production is expected to improve in plantation crops (coffee,
tea and rubber); livestock and poultry products; horticulture
products; and dairy and fisheries.
1.42 Production
of crops, particularly wheat and pulses, has plateaued for
some time now. Wheat production reached its peak of 76.4
million tonnes in 1999-2000, which has not been achieved
again. In case of pulses, production reached 14.9 million
tonnes in 1998-99 and again in 2003-04, but has remained
singificantly below that level in the last three years. There
has not been any varietal breakthrough in pulses. Though
pulses were brought within the ambit of Technology Mission on
Oilseeds in 1990 and the centrally sponsored scheme of
Integrated Scheme of Oilseeds, Pulses, Oilpalm and Maize (ISPPOM)
is being implemented in major pulses-growing States with
effect from April 2004, productivity of pulses has remained
stagnant. Since pulses are genetically low-yielding; and are
grown on marginal and sub-marginal lands under rain-fed
conditions, focus needs to shift to micro-irrigation,
micro-nutrients, improved production practices and development
of improved/better yielding seeds. With overseas availability
being limited, reduction in price volatility of pulses will
depend on steady growth of domestic production. In case of
wheat, there is need for the development of area-specific
varieties, particularly to suit the water-abundant eastern
region.
1.43 The year
2006-07 not only witnessed sustained growth in manufacturing,
but also a distinct improvement in the growth of electricity.
With a year-on-year growth of 11.4 per cent during
April-December 2006 compared to a growth of 9.0 per cent in
the corresponding period of 2005, manufacturing contributed
over 91 per cent to the overall industrial growth measured in
terms of IIP. Within manufacturing, chemicals, basic metals,
machinery and equipments and transport equipments, with a
weight of 35.0 per cent in IIP, contributed 55.2 per cent to
its growth. All these industries are skill-intensive and
produce relatively high value-added products. Growth in cotton
textiles and textile products was also in double digits. Poor
performance of the sub-sectors of food products and leather,
however, continues to be a cause of concern. Both these
industries are not only local resource based, but also
employment-intensive. In terms of use-based classification, in
the current year, higher growth rates were observed in basic
goods, capital goods and intermediates. These sectors are
expected to sustain these higher growth rates with nearly 85
per cent of the respondents of a Survey conducted by the
Confederation of Indian Industry indicating their intentions
of making additional investments. Notwithstanding a recovery
in the growth in the mining sector to 4.0 per cent in
April-December 2006 from 0.4 per cent in April-December 2005,
performance of the sector continues to be below par.