Mumbai, Oct 29 (UNI) Sustained growth in manufacturing and service sectors has helped the economy to maintain a steady growth, according to a report released by the Reserve Bank of India (RBI) a day ahead of the announcement of the mid-term credit policy. The report, which was released today by RBI, cited the Central Statistical Organisation (CSO) estimate, which predicts the GDP growth of 9.3 per cent during the first quarter of 2007-08 as compared to 9.6 per cent during the same period in 2006-07.
During April-August 2007, the industrial production index was 9.8 per cent as compared 11.0 per cent recorded during the corresponding period of the previous year. The manufacturing sector growth was 10.3 per cent during April-August this year as against 12.2 per cent in the corresponding period last fiscal.
The services sector continued to record double-digit growth at 10.6 per cent in April-June. Leading indicators of service sector activity for April-August 2007 showed that cargo handled at major ports and imported cargo handled by civil aviation witnessed a strong growth. Growth rates in commercial vehicle production, new cell phone connections, passengers handled by civil aviation and steel were moderate during 2007-08 (April-August), albeit over a high base.
However, infrastructure showed a gradual decline during April-August. The sector recorded a growth of 6.6 per cent as compared to 8.3 per cent a year ago, with five of the six core infrastructure industries registering a deceleration. The electricity sector was the only sector which recorded a higher growth than a year ago.