Annual Plan 1998-99 Government of India Planning Commission

Abstract

The Annual Plan 1998-99 has to be seen against the backdrop of the year 1997-98 which was a difficult year for the Indian economy. An unfavourable international economic environment and a lack of dynamism on the part of the domestic economic players led to a slow-down in the performance of the economy from levels attained in the recent past & its inherent potential. The growth in GDP declined to'5.0 per cent in 1997-98 from 7.8 per cent achieved in 1996-97. The saving ratio registered a marginal decline to 23.1 per cent The average inflation rate during 1997-98 was considerably lower than the inflation rate in the preceding year. This moderation in the inflation rate during 1997-98 was achieved against a relatively high rate of monetary expansion and also increases in the administered prices of certain petroleum products.