Agriculture growth may decline

Agricultural growth is likely to slow down by more than a half in 2008-09, mainly triggered by scanty rainfall in some parts of the country during July.

"We project that GDP originating in agriculture and allied activities is likely to grow by 2 per cent in 2008-09, less than what it has done in the previous three years," the Prime Minister's Economic Advisory Council said in its economic outlook for this fiscal.

In 2007-08, the farm sector growth stood at 4.5 per cent, while it was 3.8 per cent and 5.9 per cent in 2006-07 and 2005-06, respectively.

The report, which was released today by outgoing PM EAC Chairman C Rangarajan, said the lower growth projection is in part due to the base effect of very high growth in 2007-08 and the weak South-West monsoon over peninsular, central and western India in July.