The government on Friday presented a rosy picture of the economy saying the GDP growth is estimated at 8.1 per cent during the 2003-04 fiscal with food grains production set to cross the peak performance of 212.2 million tonnes in the last financial year.
Fiscal deficit during April-December 2003, is estimated at Rs 92,435 crore (Rs 924.35 billion) compared to Rs 86,269 crore (Rs 862.69 billion) during the same period of the previous year.
As per the quarterly statement of the economy and budget for October-December 2003, presented by the finance ministry, the 8.1 per cent GDP growth for the period "bears testimony to the emerging fundamental strength and resilience of the economy."
It said prospects for agriculture sector have brightened on account of the widespread and above normal monsoon rainfall which would enable the food grains production to cross the peak performance of 212.02 million tonnes.
On the external sector, it said exports during April-December grew by 13.5 per cent in dollar terms, a rate lower than 18.1 per cent achieved in the same period of the previous year.
Imports during the period surged by 24.9 per cent as against 15.1 per cent during the same period.
The quarterly review of the economy also pointed to an all-time high forex reserves at $101.8 billion in December end, which was higher by $25 billion from the year-ago period.
Non-food credit growth, after being sluggish for the first two quarters, picked up in the third quarter and was 42 per cent more when compared to the corresponding period of 2002-03.
On the booming stock market, it said the rally in stock prices continued on the strength of buoyant foreign investment flows and "excellent" results posted by the corporates.
"A combination of moderate inflation, capital inflows, continuing soft interest rates, good corporate performance and healthy capital markets augurs well for the prospects of the economy," it said.
On the revenue front, gross tax collection of Rs 1,64,170 crore (Rs 1,641.70 billion) upto December 2003, was 12 per cent higher than the previous fiscal's mop up of Rs 1,46,192 crore (Rs 1,461.92 billion).
Direct taxes surged by 30 per cent while indirect taxes grew by 9 per cent during the first nine months of the last fiscal.