India's GDP growth for 2007-08 at 8.7 pc

New Delhi, Feb 7: India's economy is expected to grow at a marginally lower rate of 8.7 per cent in 2007-08, official figures reveal.

The slowdown from 9.6 per cent scaled in fiscal 2006-07 is being attributed mainly to anticipated dip in manufacturing growth. The performance was close to the forecast of the Reserve Bank of India of 8.5 per cent this fiscal year. Finance Minister P Chidambaram had pegged the rate at 9 per cent. However, agricultural growth saw a lag at 2.6 per cent against 3.8 per cent in 2006-07 while services sector grew by 10.7 per cent compared to 11.1 per cent.

Sectors which showed good prospects were 'manufacturing', 'electricity, gas and water supply, 'construction, trade, hotels and communication', 'financing, insurance, real estate and business services, and 'community, social and personal services'.

UNI