The Indian economy is estimated to have grown 9% in 2007-08 mainly on account of high growth witnessed in sectors such as agriculture, manufacturing, trade, real estate, hospitality and communications. India’s per capita income increased 7.6% to Rs. 24,295 (US$500) in real terms, as per the quick estimates of major economic indicators 2007-08 by the Central Statistical Organisation.

India’s government has attained its earlier growth projections for 2007-08 as the economy continued to grow at a decent pace during the fiscal and the ripple effect of the global financial crisis showed up only from October 2008 onwards.

According to the CSO data, although the 9% GDP (gross domestic product) growth during 2007-08 is a tad lower than the 9.7% growth notched up in the previous fiscal, the fact remains that it would be for the third year in a row that the country’s economy posted a growth rate of 9% and above.

Starting from a GDP growth base of 7.5% in 2004-05, the economy grew by 9.5% in 2005-06 and followed up with a higher rate of 9.7% in 2006-07. For 2007-08, the Government had projected a growth rate of 9% in May last year.

The CSO data has revealed that the sectors that helped in maintaining a high GDP growth during 2007-08 were agriculture which grew by 4.9% (against 4% in 2006-07), manufacturing by 8.2% (11.8%), real estate and business services by 11.7% and transport, storage and communication by 15.5%.

During 2007-08, India’s per capita income (at current prices) increased 12.7% to Rs. 33,283 (US$685) from Rs. 29,524 in the previous fiscal. The rate of gross domestic savings (at current prices) during the year increased to 37.7% of the GDP from 35.7% in 2006-07. Per capita consumption rose 22% to Rs 17,107 in 2007-08 from Rs 14,011 in 2003-04.

Source – The Hindu