The continued recovery in agricultural production in 2000 boosted the economy s short-term prospects. However, to sustain growth, the Government needs to push forward with its broad-based reform agenda, particularly in the areas of governance and economic reforms.
Poverty reduction remains an urgent priority.
A favorable monsoon season and wider use of fertilizer led to a strong agricultural recovery in 2000 of 5.0 percent growth. This met the projections of the Agriculture Perspective Plan, which details the Government s agricultural development strategy for two decades. However, this rate needs to be sustained, and the annual variation in agricultural performance reduced. Production of food grain increased in 2000, particularly that of rice, which rose by 8.6 percent. The industry sector grew by 8.7 percent, led by manufacturing, which expanded by 13.0 percent.