FM-LD GROWTH 2 LST

Farm output grew by 2.4 per cent in the first quarter
this fiscal against 3 per cent in the year-ago period, but
there are apprehensions that weak monsoon would damage kharif
crops and agriculture growth would be lower in the second and
the third quarters.

Mukherjee said large parts of Uttar Pradesh and Bihar,
the major grains producing states, have been declared drought
affected. "Fifty-eight districts of undivided Uttar Pradesh
and 38 districts of undivided Bihar (are drought hit), which
is a substantial part," he said.

However, kharif crops have been protected in Punjab and
Haryana by utilising underground water, Mukherjee said. Wheat
season will start with a surplus of 17.7 million tonnes and
rice season with a surplus of 14 million tonnes, he added.

Industrial growth has started to pick up, but slowly, he
said. Industrial growth bounced back to 7.8 per cent in June
compared to 5.4 per cent in the same month last year.

However, the Finance Minister did not see immediate
revival of exports unless some markets like Europe rebound.
"Exports are still not growing, and I do not see immediate
revival of exports unless European economies have robust
revival. Over 60 per cent of our total exports have been
account for by the US, Europe and Japan, and unless there is
robust revival there, exports would not pick up." PTI