India's GDP rate at 9.2 per cent, closely behind China's economy

New Delhi, Feb 7 (UNI) India's economy was poised to grow at 9.2 per cent during 2006-07 -- its fastest pace in 18 years -- following closely on the heels of the fast-growing Chinese economy.

In its first official estimate for the current fiscal year ending in March, the government estimated India's gross domestic product (GDP) growth at more than 9 per cent for the second consecutive year propelled by robust performance in its manufacturing and services sectors.

The forecast of the Government was more optimistic than the Reserve Bank of India's estimate of 8.5 to 9 per cent GDP growth.

The Chinese economy notched up a growth rate of 10.7 per cent during 2006-07.

Manufacturing output growth was slated to post an 11.3 per cent growth compared to 9.1 per cent a year ago, and services sector, which make up more than 50 per cent of GDP, was seen growing at 11.2 per cent in 2006-07 against 9.8 per cent the year before.

According to advance estimates released by the Central Statistical Organisation (CSO) here, financing, insurance, real estate and business services continued to perform well, recording an 11.1 per cent jump against 10.9 per cent in the previous year.

Much of the demand for manufacturing goods such as cars, televisions and refrigerators and the services sector were being spurred by the burgeoning middle class with larger disposable incomes.

Though the manufacturing and services sector lead the way, growth in agriculture plunged sharply to 2.7 per cent in 2006-07 after showing an uptake to 6.0 per cent in the previous year.

There was also a slowdown in the performance of the construction sector at 9.4 per cent from 14.2 per cent last year.

Electricity was seen up at 7.7 per cent from 5.3 per cent in the previous year and mining too was marginally up at 4.5 per cent from 3.6 per cent in the previous year.

The GDP at factor cost (1999-2000) prices was projected to touch Rs 28,44,022 crore in 2006-07 against the quick estimates of Rs 26,04,532 crore in 2005-06.

The CSO estimates growth for the trade, hotels, transport and communication sectors during 2006-07 was seen to rise by 30 per cent to 13.0 per cent.

UNI