Recording another year of impressive performance, the economy grew by 9.6 per cent during 2006-07, leading to over 14 per cent increase in the per capital income, the government announced on Thursday.
The improved growth in the GDP, up from 9.4 per cent in 2005-06, has been achieved due to all around improvement in mining, manufacturing and services sectors, which helped to offset the slower growth in agriculture sector, according to the quick estimates released by the Central Statistical Organisation (CSO).
While agriculture sector grew by 3.8 per cent, down from 6.1 per cent, manufacturing sector recorded 12 per cent growth, which is substantially higher than 9 per cent growth recorded in the previous year.
Likewise, mining and quarrying sector growth also improved from 4.9 per cent to 5.7 per cent, according to quick estimates for national income, consumption, expenditure, saving and capital formation.
The impressive showing was also reflected in improvement in per capital income, which increased to Rs 29,642 from Rs 25,956 during 2005-06.
The overall improvement in the performance could also be attributed to an impressive 35.9 per cent growth in capital formation that stood at Rs 14,87,786 crore (Rs 14.87786 trillion) during 2006-07.
Such higher level of investment was made possible by a significant 34.3 per cent increase in domestic savings that were estimated at Rs 14,41,423 crore (Rs 14.41423 trillion) during 2006-07 at current prices.
As per the revised figures of GDP released on Thursday, the economy grew by 9.6 per cent in 2006-07, against previous estimate of 9.4 per cent. The GDP growth figures for 2005-06 has also been revised upward from 9 per cent to 9.4 per cent.
In the current financial year, the economy grew by 9.3 per cent in the first quarter and 8.9 per cent in the second quarter.
For 2006-07,the construction sector growth has been revised upward to 12 per cent, against 10.7 per cent estimated earlier.
At constant prices (1999-00), the share of agriculture, forestry and fishing in the GDP stood at 18.5 per cent in 2006-07, down from 19.6 per cent in the previous year. Meanwhile, the share of manufacturing sector in GDP rose to 15.4 per cent, up from 15.1 per cent during the same period.
The share of financing, insurance and real estate in the GDP also increased to 14.3 per cent in 2006-07, compared to 13.8 per cent in the previous year.
At current prices, share of food items in private final consumption expenditure stood at 36.4 per cent in 2006-07, marginally up from 36.3 per cent in 2005-06.
Meanwhile, share of transport and communication went up to 17.5 per cent from 17.3 per cent during the same period, while share of gross rent, fuel and power consumption declined from 12.6 per cent in 2005-06 to 12 per cent in 2006-07.