India’s economy grew faster than previously estimated, at 9.6 per cent in 2006-07 and 9.4 per cent the year before, according to data released by the Central Statistical Organisation.
Finance Minister P Chidambaram said full-year growth in 2007-08 would be around 9 per cent.
“It is a matter of considerable satisfaction that despite turbulence and heightened global uncertainties, our economy grew by 9.6 per cent in 2006-07 and is estimated to grow close to 9 per cent this year. Which side of 9 per cent it is difficult to say.”
The revised numbers put 2006-07 growth at the highest in 18 years. In 1988-89, the economy grew 10.5 per cent.
For the first half of the current fiscal year, GDP grew at 9.1 per cent.
Terming the revised numbers a “positive surprise”, Dharmakirti Joshi, principal economist at Crisil, said GDP growth has been underestimated. “The latest estimates further justify the central bank’s action of raising interest rates,” he said.
Analysts, however, feel that growth may moderate in the short run. “I expect the economy to grow at 8.6 per cent,” said Shubhada Rao, chief economist, Yes Bank.
“I expect GDP growth during the current fiscal year to be around 8.9 per cent,” said Abheek Barua, chief economist, HDFC Bank.
With the latest revision, India’s economy grew at 7.76 per cent during the 10th Plan (2002-07), close to the targeted growth rate of 8 per cent.
Source: Business Standard
