THE NEW HINDU RATE OF GROWTH
Indian economy is on a high growth trajectory
CSO has upped the FY07 growth forecast to 9.2%
Indian economy is expected to grow by 9.2% in the current financial year ending March 2007, driven by robust growth in manufacturing and services sectors.
This will be the fastest rate in 18 years and follows a strong 9% growth in the previous year, according to the Central Statistical Organisation (CSO). The highest-ever growth rate of 10.5% was recoded in 1988-89, but it was preceded by two low-growth years on account of drought (3.8% and 4.3%). The current boom marks the best-ever growth phase in recorded history. The growth story is largely being led by industry (more specifically, manufacturing) and services. While industry as a whole is expected to grow by 9.9%, the corresponding rate for manufacturing is 11.3%. The services sector is set to expand by 11.2%,
Indian economy is on a high growth trajectory
CSO has upped the FY07 growth forecast to 9.2%
Indian economy is expected to grow by 9.2% in the current financial year ending March 2007, driven by robust growth in manufacturing and services sectors.
This will be the fastest rate in 18 years and follows a strong 9% growth in the previous year, according to the Central Statistical Organisation (CSO). The highest-ever growth rate of 10.5% was recoded in 1988-89, but it was preceded by two low-growth years on account of drought (3.8% and 4.3%). The current boom marks the best-ever growth phase in recorded history. The growth story is largely being led by industry (more specifically, manufacturing) and services. While industry as a whole is expected to grow by 9.9%, the corresponding rate for manufacturing is 11.3%. The services sector is set to expand by 11.2%,
Agriculture languishing
While industry and services sectors are booming, the agriculture sector remains an area of concern. The sector which employs about 60% of the population is expected to expand by a mere 2.7 % on top of the 6% growth last year. Agriculture's share in the economy has been consistently declining – it would account for about 18.5% of GDP, down from the 23.9% in 2000-01 and 32.2% in 1990-91.
The past four years of sustained high growth have generated a great deal of euphoria and optimism on one hand and fears of overheating on the other hand as the economy moves into unchartered territory. Raising the farm output will be key to sustaining the high level of growth and spreading the benefits of economic boom to different sections of the society.
While industry and services sectors are booming, the agriculture sector remains an area of concern. The sector which employs about 60% of the population is expected to expand by a mere 2.7 % on top of the 6% growth last year. Agriculture's share in the economy has been consistently declining – it would account for about 18.5% of GDP, down from the 23.9% in 2000-01 and 32.2% in 1990-91.
The past four years of sustained high growth have generated a great deal of euphoria and optimism on one hand and fears of overheating on the other hand as the economy moves into unchartered territory. Raising the farm output will be key to sustaining the high level of growth and spreading the benefits of economic boom to different sections of the society.
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