Government: Economy likely to grow 8.7 per cent
India's economy is likely to grow 8.7 per cent in the current financial year despite fears that a recession in the United States would sap demand for exports.
By Agencies |
NEW DELHI: India's economy is likely to grow 8.7 per cent in the current financial year despite fears that a recession in the United States would sap demand for exports, the government said Thursday.
The data released by the state-run Central Statistical Organization is slightly above the Indian central bank's growth estimate of 8.5 per cent in gross domestic product for the period April 2007 through March 2008.
Services, construction and manufacturing sectors are likely to be the biggest growth drivers, the organization said. India's agriculture sector, which provides livelihoods to some 70 per cent of the country's population of more than 1.1 billion, still lagged far behind.
The Indian economy expanded by 9.6 percent in the fiscal year that ended March 31 last year after sustaining average growth of 8.6 per cent in the previous four years.
The Indian economy may take some hits from a US recession, but its fundamentals were sound, Finance Minister P Chidambaram said last month.
``I see the Indian economy as a robust, performing economy, but not fully insulated from global events,'' Chidambaram said.
Among the booming services sector, trade, hotels, transport and communication activities were likely to expand 12.1 per cent, compared to expansion of 11.8 per cent the previous fiscal year, the statistics organization said.
Agriculture was likely to grow at a much slower rate of 2.6 per cent during the current financial year compared to growth of 3.8 per cent the previous year, it said. Growth in the industrial sector was likely to slow to 9.4 per cent from 12 per cent, it said.
The data released by the state-run Central Statistical Organization is slightly above the Indian central bank's growth estimate of 8.5 per cent in gross domestic product for the period April 2007 through March 2008.
Services, construction and manufacturing sectors are likely to be the biggest growth drivers, the organization said. India's agriculture sector, which provides livelihoods to some 70 per cent of the country's population of more than 1.1 billion, still lagged far behind.
The Indian economy expanded by 9.6 percent in the fiscal year that ended March 31 last year after sustaining average growth of 8.6 per cent in the previous four years.
The Indian economy may take some hits from a US recession, but its fundamentals were sound, Finance Minister P Chidambaram said last month.
``I see the Indian economy as a robust, performing economy, but not fully insulated from global events,'' Chidambaram said.
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Among the booming services sector, trade, hotels, transport and communication activities were likely to expand 12.1 per cent, compared to expansion of 11.8 per cent the previous fiscal year, the statistics organization said.
Agriculture was likely to grow at a much slower rate of 2.6 per cent during the current financial year compared to growth of 3.8 per cent the previous year, it said. Growth in the industrial sector was likely to slow to 9.4 per cent from 12 per cent, it said.
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