GDP grows by 9% for third successive year

By OUR CORRESPONDENT

New Delhi:May 30: India’s GDP grew by 9 per cent in 2007-08, making it the third successive year when the economy grew by 9 per cent.

Earlier, in an advance estimate, the Central Statistical Organisation (CSO) had expected GDP to grow by 8.7 per cent. Crisil’s principal economist, Mr D.K. Joshi, said that in the advance estimate, CSO had underestimated agriculture growth to 2.6 per cent.

"Our own estimate was that agriculture will grow by 3.4 per cent. Now there is an upward revision to 4.5 per cent and it is a positive surprise," said Mr Joshi.

However, the CSO has lowered manufacturing sector growth rate to 8.8 per cent from the initial estimate of 9.4 per cent. The finance minister, Mr P. Chidambaram, said the government will address the slowdown in manufacturing.

"We will have to take some corrective measures," said the finance minister.

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 growth comes amidst worries of inflation, which touched a 45-month high of 8.1 per cent for the week ended May 17.

Meanwhile, Mr Chidambaram expressed confidence that GDP will grow by 8.5 per cent in FY09. "In fact, there are one or two amongst us who think we will do better than 8.5 per cent," added the finance minister.