New Delhi, Feb 7 (PTI) Led by a smart recovery in farmoutput, the government today estimated economic growth for thecurrent financial year at 8.6 per cent, as against 8 per centa year ago.
Agriculture and allied activities are likely to grow at5.4 per cent in 2010-11, compared to just 0.4 per cent in2009-10, according to Advance Estimates released by theCentral Statistical Organisation (CSO) today.
The CSO''s GDP growth projection is higher than theforecasts made by the Reserve Bank of India and FinanceMinistry earlier.
Finance Minister Pranab Mukherjee had exuded confidencethat the economy would grow by 8.5 per cent despite risinginflation. The RBI had also projected that the economy wouldexpand by 8.5 per cent in its quarterly monetary policy reviewlast month.
The latest GDP growth estimate of 8.6 per cent for theentire fiscal means that the pace of economic expansion slowedin the second half of FY2010-11, given that GDP growth in theApril-September, 2010, period stood at 8.9 per cent.
According to data released today, agriculture and alliedactivities are projected to grow by 5.4 per cent this fiscal,as against 0.4 per cent a year ago.
Growth this fiscal is likely to be driven by 8.8 per centexpansion in the manufacturing sector, the same as in theyear-ago period.
According to the advance estimates, mining and quarryingis likely to grow by 6.2 per cent, compared to 6.9 per cent ayear ago, while electricity, gas and water production willgrow up by 5.1 per cent, as against 6.4 per cent in theprevious fiscal. .