The Central Government on February 7, 2011 stated that the economy would grow at an estimated 8.6 per cent during the current financial year as against 8 per cent a year ago.
The gross domestic product (GDP) estimates released by the Central Statistical Organisation (CSO) are higher than the predictions made by the Reserve Bank of India (RBI) and the Finance Ministry but are also an indication of the fact that the economy had slowed down somewhat in the second-half of the current financial year.
The Advance Estimates revealed that agriculture and allied activities are likely to grow at 5.4 per cent in 2010-11 as compared to just 0.4 per cent in 2009-10 making a huge stride.
Earlier, Finance Minister Pranab Mukherjee had exuded confidence that the economy would grow by 8.5 per cent despite rising inflation. The RBI had also projected that the economy would expand by 8.5 per cent in its quarterly monetary policy review last month.
The latest GDP growth estimate of 8.6 per cent for the entire fiscal implies that the pace of economic expansion slowed in the second-half of 2010-11, given that GDP growth in the April-September 2010, period stood at 8.9 per cent.
The size of the economy at current prices is projected to rise to Rs.72,56,571 crore at the end of the current fiscal, up 18.3 per cent from Rs.61,33,230 crore in 2009-10. Based on 2004-05 prices, the Indian economy is projected to expand by 8.6 per cent in the current fiscal ending March 2011.
This is higher than 8 per cent growth recorded in fiscal 2009-10.Last Update Sunday 13th February 2011