New Delhi: On the back of an excellent monsoon, the Mid-Year Economic Review today (November 14) forecast a double-digit farm sector growth for the first time in 14 years with an all-time high foodgrain output of 220 million tonnes.

"Like on several previous occasions such as 1988-89, 1980-81, 1975-76 and 1967-68, in years of good monsoon following a drought, the agriculture and allied sector may grow at a double-digit rate," Finance Secretary D C Gupta said releasing the second Mid-Year Review of the Economy.

Foodgrain output, which is projected to reach 220 million tonnes during the current year, is heading towards a new record, crossing the earlier peak of 212 million tonnes in 2001-02, he said.

For the current fiscal, the first quarter CSO estimate of GDP (gross domestic product) growth in the agri and allied sector at 1.7 per cent, as against 2.7 per cent recorded during the corresponding period, relates to the pre-monsoon period, he said, adding the bountiful monsoon is expected to impact growth in the second and third quarters.

PTI