GDP Growth Revised to 8% for FY10

Introduction

The Central Statistical Organisation on Monday revised growth in the gross domestic product (GDP) for 2009-10 to 8% from the previous 7.4% due to robust growth in manufacturing and services sectors. The government also revised the GDP growth for 2008-09 marginally to 6.8% from the previously announced 6.7%.

The per capita income at 2004-05 prices is estimated at Rs 33,731 for 2009-10, up from Rs 31,801 in 2008-09, showing an increase of 6.1%. Per capita income at current prices rose 14.5% to Rs 46,492 in 2009-10 compared to Rs 40,605 crore in the previous fiscal. Per capita income refers to the earnings of each citizen in the country if the national income is equally divided among the population. National income or the size of the economy rose 16.1% at current prices to Rs 60,95,230 crore compared to Rs 52,49,163 crore in 2008-09.

"The growth rate of 8% in the GDP during 2009-10 has been achieved due to high growth in transport, storage and communication (15%), community, social and personal services (11.8%), financing, insurance, real estate and business services (9.2%) and manufacturing (8.8%)," CSO said. Farm sector growth in 2009-10 stood at 0.4%, up from the 1% decline in 2008-09. It said the GDP estimates and other aggregates for the previous years have been revised due to the new wholesale price index with 2004-05 as the base as well as the revision in the index of industrial production.

GDP for 2009-10 at 2004-05 prices is estimated at Rs 44,93,743 crore compared to Rs 41,37,125 crore. Gross domestic saving (GDS) at current prices in 2009-10 is estimated at Rs 22,07,423 crore compared to Rs 17,98,347 crore in 2008-09. In absolute terms, the household sector savings increased from Rs 13,31,033 crore in 2008-09 to Rs 15,36,071 crore in 2009-10, the savings of private sector rose from Rs 4,38,376 crore in 2008-09 to Rs 5,31,403 crore in 2009-10 and that of public sector increased from Rs 28,938 crore in 2008-09 to Rs 1,39,949 crore in 2009-10, data showed.

The economy is expected to grow 8.5% in the current fiscal but some policymakers say it could reach 9%. It has grown 8.9% in the past two quarters of the current fiscal year.

Source

India Brand Equity Foundation, February 1, 2011