New Delhi: The Indian Economy seems to be booming. According to the government this growth has been fertilised by a buoyant growth in agriculture and manufacturing.
Government projected a higher economic growth of 8.1 per cent for this fiscal from 7.5 per cent in 2004-05, far exceeding expectations of the Finance Ministry and Reserve Bank.
The Central Statistical Organisation's advance estimates released said that higher growth would be driven by 9.4 per cent growth in manufacturing and the booming over 8 per cent growth in services sector.
The GDP growth is slated to be better also due to a good monsoon that will push up farm output by 2.3 per cent this fiscal after a lackluster performance of 0.7 per cent in 2004-05.
Enthused by higher growth projection, Finance Minister P Chidambaram said that the Sensex crossing 10,000 points mark and the growth projection of 8.1 per cent was a "heady mixture".
"Sensex reflects the business confidence and strong fundamentals of the economy," he said, adding sound monetary and fiscal policy will bring us growth.
With higher growth, the income of an average Indian is slated to go up by 5.9 per cent this year compared to 6.1 per cent last year.
The per capita income of India is estimated at Rs 20,813 this fiscal from 19,649 a year ago.
The Gross Domestic Product is valued at Rs 25,86,587 crore in 2005-06, which is 8.1 per cent higher than Rs 23,93,671 crore in the last fiscal.
Services and manufacturing sector powered the high GDP growth this fiscal while agriculture showed some improvement. Farm sector is slated to grow by 2.3 per cent this fiscal compared to 0.7 per cent last fiscal.
Among the industrial sector, manufacturing sector is expected to clock 9.4 per cent this fiscal compared to 9.1 per cent in 2004-05.
Mining sector is slated to see a flat growth of 0.6 per cent this year compared to 5.1 per cent a year ago, while electricity is slated to log 4.9 per cent compared to 6.6 per cent last year.
(With PTI imputs)
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