Economic growth revised down to 8.4%

Economic growth revised down to 8.4%

The government today revised the economic growth rate for 2010-11 financial year slightly down to 8.4 per cent from the earlier estimate of 8.5 per cent.

"The Gross Domestic Product (GDP) at factor cost at constant prices in 2010-11 has registered a growth of 8.4 per cent over the previous year," the Quick Estimates of economic growth released by the Ministry of Statistics and Programme Implementation said.

"The major source of growth in the GDP has been from the services sector which has grown at the rate of 9.3 per cent. The agriculture sector growth has also been impressive at 7 per cent during the year 2010-11," it said.

The growth of secondary sector, which includes manufacturing and construction sector, stood at 7.2 per cent in 2010-11.

In addition, the GDP growth estimate for FY09-10 has been revised upward to 8.4 per cent from the previous estimate of 8 per cent.

Agriculture sector growth recorded 7 per cent growth in 2010-11 as against a mere 1 per cent in 2009-10, the data showed.

Finance, insurance, real estate and business services expanded by 10.4 per cent in 2010-11 against a growth rate of 9.4 per cent in the previous fiscal.

Earlier this month, the Reserve Bank had lowered its GDP growth forecast for the current fiscal to 7 per cent, from the earlier estimate of 7.6, due to global economic slowdown, high domestic interest rates and other factors.

Trade, hotels and restaurants expanded by 9 per cent in 2010-11 against a growth rate of 7.8 per cent in 2009-10, the Quick Estimates released by MOSPI Minister Srikant Jena said.

Construction sector grew by 8 per cent during the year under review against 7 per cent in the previous fiscal.

The mining and quarrying sectors registered 5 per cent growth in FY'11, against 6.3 per cent expansion in the previous fiscal.

Manufacturing grew by 7.6 per cent in 2010-11 compared to a growth of 9.7 per cent in 2009-10.

Furthermore, electricity, gas and water production recorded 3 per cent growth in FY'11, compared to 6.3 per cent expansion in FY'10.

As per the Quick Estimates, the transport, storage and communication sector expanded by 14.7 per cent in 2010-11.

The sector had grown by 14.8 per cent in the previous fiscal. The GDP at constant prices at market prices during the year 2010-11 has grown at 9.6 per cent, as per the data.

SOURCE: financialtimes.com