GDP up at 8.4 pc; services maintain double digit growth : RBI

Mumbai, Aug 30 (UNI) The annual report presented by the Reserve Bank Of India (RBI) shows real GDP growth accelerating from 7.5 per cent during 2004-05 to 8.4 per cent during 2005-06 on the back of buoyant manufacturing and services activity supported by a recovery in the agricultural sector, the release issued by RBI stated today.

The Real GDP growth has, thus, averaged over eight per cent during the last three years and over seven per cent in the first four years (2002-03 to 2005-06) of the Tenth Five Year Plan, the release added.

Growth in real GDP originating from the agricultural sector recovered to 3.9 per cent in 2005-06 from 0.7 per cent in 2004-05.

The total production of foodgrains at 208.3 million tonnes (mt) in 2005-06, albeit higher than that in 2004-05 (198.4 mt), was lower than that in 2003-04 (213.2 mt). A noteworthy aspect of economic activity during 2005-06 was the continued recovery of manufacturing activity, led by both investment and consumption demand, informed the release.

The services sector maintained double-digit growth for the second successive year, and remained the key driver of growth during 2005-06 by contributing almost three-fourths to the overall real GDP growth. The strengthening of economic activity in the recent years has been supported by a consistent increase in the gross domestic investment rate from 23.0 per cent of GDP in 2001-02 to 30.1 per cent in 2004-05, the release added.

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