NEW DELHI: The Central Statistical Organisation (CSO) on Wednesday marked up the country's GDP (gross domestic product) growth estimates for 2005-06 to nine per cent from 8.4 per cent envisaged earlier, mainly on account of a higher-than-anticipated output in agriculture during the fiscal year. With the GDP growing at such a fast clip during the year — the second-fastest globally, after China — hopes are being kindled of the Indian economy achieving an overall growth rate of eight per cent during the Tenth Plan period ending March 31, 2007.

Speaking to newspersons after the release of the GDP figures by the CSO, an enthused Finance Minister P. Chidambaram attributed the high growth to the UPA Government's investment-friendly policies. The Government's policies "boosted savings and investment and perhaps, also pushed industry to be more productive and efficient,'' he said. However, holding out a warning for the current fiscal, Mr. Chidambaram said: "It [the revised GDP figures] augurs well for 2006-07. Although, I must caution we will have to see what will be its impact on growth figures this year as the base figures have been revised.''

With this revision, the GDP at constant prices accordingly gets marked up to Rs. 26,04,532 crore in 2005-06 as compared to Rs. 23,89,660 crore in 2004-05. The revision, the CSO data revealed, was primarily due to a much higher farm sector growth at six per cent during the year as compared to the previous estimates of 3.9 per cent. The growth in the manufacturing sector was also a tad better at 9.1 per cent as against nine per cent estimated earlier.

Likewise, the growth rate in the construction sector has been revised higher at 14.2 per cent while transport and communication also grew at a faster pace at 13.9 per cent in 2005-06. The per capita income at constant prices (1999-2000) for 2005-06 now stands estimated at Rs. 20,734, a marked growth of 7.4 per cent over the figure of Rs. 19,297 in 2004-05. During the year, the savings and investment rates were both above 30 per cent of the GDP.

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