At 9.4%, GDP growth second fastest-ever

NEW DELHI: The dream run continues. The Indian economy continues to grow at a scorching pace, notching up its second fastest growth rate ever, with gross domestic product (GDP) rising 9.4% during 2006-07. The strong performance was pulled off on the strength of double-digit growth rates by manufacturing and most service sectors, which ensured that the economy grew by over 9% for the second year running despite a measly 2.7% rise in farm output. The fastest GDP rise since 1988-89 — when the economy grew 10.5% — also beats the government’s earlier estimate of 9.2% and puts India second only to China in terms of growth in major economies. With GDP at 1999-2000 prices estimated at Rs 28,48,157 crore, the Central Statistical Organisation, which put out the revised estimates on Thursday, projected that the per capita income went up 8.4% to Rs 22,483 during 2006-07. While the government was pleased with the overall numbers, the slow rise in farm output was a worry. Over half the population still depends on agriculture for a livelihood but the sector’s share in economic activity has declined from over 34% in 1990-91 to 18.5% at the end of 2006-07.
Source: TOI, June 1, 2007