New Delhi: Buoyancy in agriculture has pushed the Indian economic growth to 9%, up from 8.7% estimated earlier, even as the performance of manufacturing sector has been deteriorating.
“The upward revision in the GDP growth rate is mainly on account of the revision made in the estimated production of agricultural crops by the Department of Agriculture and Cooperation,” the government said in revised estimates of GDP.
The agricultural and allied activities grew by 4.5%, compared to earlier estimates of 2.6%, while the manufacturing sector growth has been lowered to 8.8% from 9.4%.
Going by the revised estimates, India’s GDP growth stood at 9% in 2007-08, compared to 9.6% registered in the previous fiscal.
The economic growth in the fourth quarter of 2007-08 dipped to 8.8% as compared to 9.7% in the corresponding period previous fiscal.
The fall has been mainly on account of deceleration in the performance of manufacturing and agriculture sectors.
According to the GDP figures for the fourth quarter, the manufacturing sector growth rate decelerated to 5.8% from a high of 12.8% in January-March 2007.
The agriculture and allied sector recorded a growth rate of 2.9%, down from 4.9% in the same quarter of 2006-07.
During 2007-08, the sectors which performed poorly were transport and communication, electricity, gas and water supply.
While growth rate of the transport, communication, trade and hotels sector declined to 12% from the earlier estimate of 12.1%, electricity and gas supply activities growth rate decelerated to 6.3%, against 7.8% projected earlier.
The construction sector, however, grew marginally by 9.8% as compared to earlier estimate of 9.6%.
Besides, the financial services sector, including insurance, real estate and other services also registered a marginal increase to 11.8% as compared to 11.7% projected in the advance estimates.