Economy grows at 9.4 pc in '07

New Delhi: Indian economy grew by 9.4 per cent in 2006-07 against 9 per cent in the previous year with robust growth in manufacturing and services sector.

However, gross domestic product growth slowed down to 9.1 per cent in the fourth quarter (Jan-March) of 2006-07 against 10 per cent in the same quarter of the previous fiscal, pulled down by slow agriculture, construction, financial and social services growth.

GDP growth during the fourth quarter was higher sequentially as it was 8.7 per cent in the previous quarter of 2006-07.

Manufacturing grew by 12.3 per cent in 2006-07 against 9.1 per cent in the previous year, while trade, hotels, transport and communication grew by 13 per cent against 10.4 per cent.

Agriculture and allied sector's growth, however, slowed down to 2.7 per cent against six per cent and construction to 10.7 per cent against 14.2 per cent.

Mining and quarrying grew by 5.1 per cent during 2006-07 against 3.6 per cent in the previous fiscal, while electricity, gas and water supply by registered 7.4 per cent growth against 5.3 per cent.

However, community, social and personal services grew by 7.8 per cent against 7.7 per cent.

Services relating to financing, insurance, real estate and business growth slowed down to 10.6 per cent against 10.9 per cent.

The GDP growth was higher during 2006-07 as against projection of 9.2 per cent made in the quick estimates by Central Statistical Organisation (CSO).

In absolute terms, GDP stood at Rs 28,48,157 crore during 2006-07 against Rs 28,44,022 crore estimated earlier.

RBI has projected the economy to grow at a slower rate of 8.5 per cent this fiscal.