India’s GDP at 9% for 2007-08
India’s growth story stayed the course with GDP expanding by 9 per cent level for the third year in a row, as agriculture made up for the slight moderation in industrial sector growth in 2007-08.
Though some slowdown was witnessed in the manufacturing and construction sectors, the upsurge in agriculture sector prompted the Central Statistical Organisation (CSO) to raise the Gross Domestic Product (GDP) growth rate to 9 per cent, as against 8.7 per cent estimated in February.
The nine per cent growth rate follows 9.6 per cent economic growth rate in 2006-07 and 9.4 per cent in 2005-06. The high GDP growth comes amidst worries of inflation, which touched a 45-month high of 8.1 per cent for the week ended May 17.
The agricultural and allied sectors grew by 4.5 per cent during 2007-08, compared to earlier estimates of 2.6 per cent, while the manufacturing sector growth rate has been lowered to 8.8 per cent from the initial estimate of 9.4 per cent.