By IANS
New Delhi : India continued to log a robust economic growth with an expansion of 9.3 percent in the first quarter of this fiscal, after rising by an impressive 9.4 percent in 2006-07, official data showed Friday.
Manufacturing and services sectors once again propped up the expansion with an average growth of between 11-12 percent, while the farm sector also showed some improvement over the same period last year, the data revealed.
As per the data released by the Central Statistical Organisation (CSO), India’s Gross Domestic Product (GDP) is valued at Rs.7,231 billion in the first quarter of this fiscal, as against Rs.6,613 billion for the same period in 2006-07.
Reacting to the GDP figures, Finance Minister P. Chidambaram said he was quite satisfied with the economy’s performance and assured every possible step by the government to ensure that the momentum was maintained.
“Despite compulsions of a tight monetary policy, we will ensure that credit flow to the productive sectors of the economy remains strong,” the finance minister told reporters here soon after the release of GDP data.
“Though provisional estimates of 9.3 percent GDP growth during the first quarter are a shade below than the growth last year, given the circumstances on account of external situation, it is quite satisfactory.”
The overall GDP growth for the first quarter of the last fiscal was 9.6 percent.
Among the broad categories, “trade, hotels, transport and communication” logged the highest growth of 12 percent, followed by 11.9 percent for “manufacturing” and 11 percent for “financing, insurance, real estate and business services”.
“Construction” was next with 10.7 percent growth, followed by electricity, gas and water supply” with 8.3 percent, “community, social and personal services” with 7.6 percent, “agriculture, forestry and fishing” with 3.8 percent and “mining and quarrying” with 3.2 percent.
A significant aspect revealed by the data was that the farm sector, which grew by 2.8 percent in the first quarter of last fiscal, improved its performance with a 3.8 percent growth, while manufacturing saw a small decline.
Chidambaram said he was also confident of meeting the target set for 2007-08.
“As long as savings are high and capital formation is high, it supports the hypothesis that investment will remain buoyant. I am confident GDP growth rate will remain close to nine percent this year.”