Sunday, October 1, 2006

India Growth story

India's GDP , in real terms, grew by 8.4 % during FY06 compared to 7.5 % during FY05.

GDP for FY06 is now estimated at Rs 25953 Billion.

GDP for FY06Q4 increased by a robust 9.3 %

India's growth story has been led by continued increase in contribution of the service sector (54%), and to a lesser extent by the industry (26.1%) .

Due to significant growth in financial and trade sector, the share of services in GDP has been improving from 49.2% in FY00 to 54% in FY06

GDP growth during FY06 was boosted by the fast growing sectors such as construction (12.1%)

Other boosters of GDP growth are Hotels, Trade, Transport and communication (11.5%)

Industrial growth is mainly attributed to manufacturing and construction sector. Mining and quarrying has been underperforming since last six years.

GDP of Rs 25953 Bn is the total of Agriculture ( Rs 5166 Bn), Industry ( Rs 6769 Bn) and Services ( Rs 14019 Bn)

The spur in construction due to retail activities and infrastructure projects will help the manufacturing sector.

Communication, hotel and restaurants activities will drive growth.

The World Bank and CMIE have a growth projection of 8% for FY07 for GDP growth.

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