India's growth rate for 2010-11 has been lowered by a notch to 8.4 per cent on account of changes made recently to the Index of Industrial Production (IIP), the statistics ministry said on Tuesday.
The growth rate for financial year 2009-10 has been increased to account for the same changes in IIP. In 2009-10, the economy grew by 8.4 per cent, higher by 40 basis points (a basis point is one-hundredth of a percentage point) in relation to the original estimate. The growth data for 2008-09 was lowered by 10 basis points to 6.7 per cent, according to the statistics ministry statement.
| REVISED GROWTH RATES (in percentage)|
| YEAR|| ORIGINAL GROWTH RATE||REVISED GROWTH RATE|
| 2010-11|| 8.5|| 8.4|
| 2009-10|| 8|| 8.4|
| 2008-09|| 6.8|| 6.7|
|Source:Ministry of Finance|
"The Gross Domestic Product (GDP) at factor cost at constant prices in 2010-11 has registered a growth of 8.4 per cent over the previous year," the Quick Estimates of economic growth
released by India's 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 per cent
. The agriculture sector growth has also been impressive at 7 per cent during the year 2010-11," it said.
The growth of secondary sector, which includes manufacturing and construction sector, stood at 7.2 per cent in 2010-11.
In addition, the GDP growth estimate for FY10
has been revised upward to 8.4 per cent from the previous estimate of 8 per cent.
Agriculture sector growth recorded 7 per cent growth in 2010-11 as against a mere 1 per cent in 2009-10, the data showed.
Finance, insurance, real estate and business services expanded by 10.4 per cent in 2010-11 against a growth rate of 9.4 per cent in the previous fiscal.
Earlier this month, the Reserve Bank had lowered its GDP growth forecast for the current fiscal to 7 per cent, from the earlier estimate of 7.6, due to global economic slowdown, high domestic interest rates and other factors.- With inputs from agencies