GDP records 9.6 per cent growth in 2006-07

Union Finance Minister P Chidambaram today said 2006-07 has recorded a growth of 9.6 per cent in the economy, and expressed confidence that it would be nearly 9 per cent in 2007-08.

New Delhi, Jan 31 : Union Finance Minister P Chidambaram today said 2006-07 has recorded a growth of 9.6 per cent in the economy, and expressed confidence that it would be nearly 9 per cent in 2007-08.

Chidambaram told reporters immediately after the release of the figures of Gross Domestic Product (GDP) for the year 2006-07 that the government would try and maintain same level of growth and would make rapid adjustments depending on the evolving global economic situation.

"My goal is to continue to maintain the same level of growth but at the same time government reserves the right to make rapid adjustments depending on evolving global economic situation," he said.

"We are confident that if we keep firm hands on the wheel, the Indian economy will sail through turbulent waters. We are maintaining a balance between growth and inflation," he said.

Inflation is still below four per cent and growth is well above eight percent, he added.

He further said that the Government would also appoint two Additional Solicitor Generals (ASG) exclusively to deal with direct and indirect tax cases in the Supreme Court and High Courts across the country.

M Chandrashekharan will deal with indirect tax cases while Parag Tripathi will deal with direct tax cases, he added.

The growth in the GDP from 9.4 per cent in 2005-06 to 9.6 per cent in 2006-07, has been achieved due to improvement in mining, manufacturing and services sectors, which resulted which helped to offset the slower growth in agriculture sector, according to the quick estimates released by the Central Statistical Organisation (CSO).

Agriculture sector recorded a growth of 3.8 per cent, down from 6.1 per cent, manufacturing sector witnessed 12 per cent growth, higher than 9 per cent growth recorded in the previous year.

Mining and quarrying sector recorded improved growth of 5.7 per cent from 4.9 per cent.

There is an impressive growth in per capital income, which increased to Rs 29,642 from Rs 25,956 during 2005-06.

The overall improvement could also be due to 35.9 per cent growth in capital formation that was Rs 14,87,786 crore during 2006-07.

Higher level of investment was made possible by a significant 34.3 per cent increase in domestic savings that were estimated at Rs 14,41,423 crore during 2006-07 at current prices.

ANI