The GDP growth rate had slowed to 6.7% in 2008-09 following the global economic crisis, after topping 9% in the previous three years. On Monday, finance minister Pranab Mukherjee reiterated his confidence that the economy would grow at 8.5%-plus in 2010-11.

Finance secretary Ashok Chawla also pegged economic growth at 8.5% in 2010-11. “The growth numbers are pleasant but not really surprising, because we were expecting them to be robust which they turned out to be. This clearly indicates the momentum which is in the economy and the expectations that the 8.5% estimation for 2010-11 is going to be a clear possibility,” he said.

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Above picture courtesy: Moneymint

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Chidambaram said despite growing uncertainty and turbulence in global Markets, the Indian Economy was estimated to grow at near-9% in 2007-08, although the government may need to make ‘rapid adjustments’ in policy, depending upon the global situation. “Which side of 9% it is difficult to say,” the minister told reporters. He added that he would be doubly happy if it was to the right side of 9%.

The government’s Central Statistical Organisation (CSO) had earlier estimated growth in gross domestic product (GDP)—a measure of overall domestic income—at 9.4% for 2006-07. The upward revision comes as a result of higher growth in the banking & insurance sector at 13.9%, instead of the estimated 10.6%.

CSO has also revised the growth estimate for 2005-06 to 9.4% from 9%. The revised data puts the Economy’s average growth rate over the past four years since the UPA government has been in power at 8.8%.

“This shows that since the United Progressive Alliance came to power, there has been an investment boom. People are investing and they have confidence in the future,” Chidambaram said. “Domestic investment has been high and foreign direct investment also played its part.”

Sector-wise, while growth in manufacturing has slightly eased, construction has improved to 12% from 10.7%.

Above news courtesy: Financial Express

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