GDP growth 8.4% in 2005-06, 9.3% in Q4

New Delhi, May 31 (UNI) Gross Domestic Product (GDP) grew by a robust 8.4 per cent in fiscal 2005-06, catapulted by a hefty 9.3 per cent growth in the last quarter, with a remarkable recovery of the agricultural sector and encouraging performance by the manufacturing and services sectors.

The revised estimates of National Income released here today by the Central Statistical Organisation (CSO), paint a picture of an economy on the rebound and surpassing official and private estimates of the GDP.

Agriculture in fiscal 2005-06 demonstrated a recovery by registering a growth rate of 3.9 per cent, picking up from a low of 0.7 per cent in 2004-05 and manufacturing maintained its buoyancy with a healthy growth of 9 per cent.

The GDP at factor cost at constant (1999-2000) prices was reivsed upwards to Rs 25,95,339 crore against Rs 25,86,587 crore projected in the Advanced Estimates.

According to the revised estimates, GDP in the first quarter of 2005-06 grew by 8.5 per cent, in the second quarter by 8.4 per cent and third quarter by 7.5 per cent.

In Q4, agriculture grew by 5.5 per cent, manufacturing 8.9 per cent and services maintained their strong momentum with a growth rate of 9.6 per cent.

The surprise in the data was the pick up in farm sector growth, considered essential for sustaining a growth rate of eight per cent plus.

The GDP figures, however, had little impact on the bourses which after opening on a weak note plummeted by nearly 600 points on the Bombay Stock Exchange and closed 388 points lower than yesterday's index.

Finance Minister P Chidambaram, however, attributed the volatility in the stock markets to sales by FIIs buttressed by a meltdown in global markets.

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