India's GDP clocked 9% in 2008

India's gross domestic product (GDP) has increased by 7.5 per cent, 9.5 per cent, 9.7 per cent and 9 per cent in the first four years from fiscal year 2004-05 to 2007-08 recording a sustained growth of over 9 per cent for three consecutive years for the first time.

India is second fastest growing economy in the world with 7.1 per cent GDP expansion in 2008-09, Pranab Mukherjee said.

With per capita income growing at 7.4 percent per annum, this represented the fastest ever improvement in living standards over a four-year period. The gross domestic savings rate shot up from 29.8 percent to 37.7 percent during this period.

The growth drivers for the period were agriculture, services, manufacturing along with trade and construction.

The fiscal deficit has come down from 4.5 per cent in 2003-04 to 2.7 per cent in 2007-08 and revenue deficit from 3.6 per cent to 1.1 per cent in 2007-08.

This was stated by the Finance Minister, Pranab Mukherjee, while presenting the Interim Budget 2009-2010

in the Lok Sabha today.

He further stated that the annual growth rate of agriculture rose to 3.7 per cent during 2003-04 to 2007-08.

The foodgrain production recorded an increase of 10 million tonnes each year during this period and touched an all time high of 230 million tonnes in 2007-08.

The manufacturing sector recorded a growth of 9.5 per cent per annum in the period 2004-05 to 2007-08. The exports grew at an annual average growth rate of 26.4 per cent in US dollar terms in the period 2004-05 to 2007-08.

Source: PIB