GDP records sustained growth of over 9% for 3 consecutive years

The Gross Domestic Product has increased by 7.5%, 9.5%, 9.7% and 9% in the first four years from fiscal year 2004-05 to 2007-08 recording a sustained growth of over 9% for three consecutive years for the first time. 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% in 2003-04 to 2.7% in 2007-08 and revenue deficit from 3.6% to 1.1% in 2007-08. This was stated by the Finance Minister, Shri 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% 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 annum in the period 2004-05 to 2007-08.

The exports grew at an annual average growth rate of 26.4% in US dollar terms in the period 2004-05 to 2007-08.

Source : Equity Bulls

Keywords