THE MINERAL INDUSTRY OF INDIA—2001 11.1 THE MINERAL INDUSTRY OF

India’s economy in 2001 was characterized by a gross domestic product (GDP) growth of 5.4%. Fiscal deficit was projected to be 4.7 % of GDP (Far Eastern Economic Review, 2001a). Interest rates were low with the Reserve Bank of India lending rate at 7%. Agriculture encompassed 25 % of GDP and was forecast at 3.5 % growth rate. Industrial production growth rate declined compared to that for 2000. The Government scrapped various surcharges on corporate income tax, simplified excise duties, and cut interest rates. It also sold its stakes in state-owned enterprises through privatization. The rate of growth of exports led by jewelry, leather goods, machinery, software, and textiles declined in 2001 and total exports represented 10 % of GDP. India is endowed with vast mineral resources, and their production contributed 2 % to GDP. The country exploited 5