Indian Economy at its best growth in last 18 years.
The government of India says the 9.4 percent growth in the fiscal year that ended in March is higher than earlier expectations. It is also the fastest growth since 1989, and was fueled by robust growth
in manufacturing, exports, and the services sector.Finance Minister P. Chidambaram says growth rates of over eight percent for a fifth straight year show that the time has come to "shed skepticism about the sustainability of high growth" in India.
Indian economy grew 9.4 per cent in the fiscal year that ended in March, its fastest rate in 18 years and second only to China among major global economies, data showed yesterday.
It was the economy's strongest performance since 1988-89, when it grew 10.5 per cent, and beat a government estimate of 9.2.
Finance Minister P. Chidambaram says growth rates of over eight percent for a fifth straight year show that the time has come to "shed skepticism about the sustainability of high growth" in India."With the demand being so high, the existing capacity was not able to service the demand, so a lot of investments were taking plac," said DK Joshi. "So now investment has become the driver of growth."
High growth helped lower the federal fiscal deficit to 3.5 per cent of GDP in 2006-07, from 4.1 per cent a year earlier.
They also point out that India is unlikely to be able to match the more than ten percent growth that has been taking place in the world's other big economy - China.
Agriculture, which generates almost a quarter of economic activity, grew 3.8 per cent in January-March from a year earlier, compared with 1.5 per cent in the previous quarter.
In contrast, manufacturing grew 12.4 per cent from a year earlier, its strongest annual pace since quarterly data was first published in 1997.
Services grew 9.9 per cent from a year earlier, matching similar growth in the previous period.
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