Growth rate revised downward to 8.4% for 2010-11

The government today revised the economic growth rate for 2010-11 financial year slightly down to 8.4% from the earlier estimate of 8.5%.

"The Gross Domestic Product (GDP) at factor cost at constant prices in 2010-11 has registered a growth of 8.4% over the previous year," the Quick Estimates of economic growth released by the Ministry of Statistics and Programme Implementation said.

"The major source of growth in the GDP has been from the services sector which has grown at the rate of 9.3%. The agriculture sector growth has also been impressive at 7% during the year 2010-11," it said.

The growth of secondary sector, which includes manufacturing and construction sector, stood at 7.2% in 2010-11.

In addition, the GDP growth estimate for FY09-10 has been revised upward to 8.4% from the previous estimate of 8%.

Agriculture sector growth recorded 7% growth in 2010-11 as against a mere 1% in 2009-10, the data showed.

Finance, insurance, real estate and business services expanded by 10.4% in 2010-11 against a growth rate of 9.4% in the previous fiscal.

Earlier this month, the Reserve Bank had lowered its GDP growth forecast for the current fiscal to 7%, from the earlier estimate of 7.6, due to global economic slowdown, high domestic interest rates and other factors.

Trade, hotels and restaurants expanded by 9% in 2010-11 against a growth rate of 7.8% in 2009-10, the Quick Estimates released by MOSPI Minister Srikant Jena said.

Construction sector grew by 8% during the year under review against 7% in the previous fiscal.

The mining and quarrying sectors registered 5% growth in FY11, against 6.3% expansion in the previous fiscal.

Manufacturing grew by 7.6% in 2010-11 compared to a growth of 9.7% in 2009-10.

Furthermore, electricity, gas and water production recorded 3% growth in FY11, compared to 6.3% expansion in FY'10.

As per the Quick Estimates, the transport, storage and communication sector expanded by 14.7% in 2010-11. The sector had grown by 14.8% in the previous fiscal.

The GDP at constant prices at market prices during the year 2010-11 has grown at 9.6%, as per the data.