India Forecasts 7.2 Percent Growth, Per Capita Income Increases

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Feb. 9 – India’s domestic economic growth is forecast to reach 7.2 percent for 2009-10, against the 6.7 percent recorded a year ago, according to advance gross domestic product estimates released by the Central Statistical Organization (CSO).

As per forecast estimates, per capita income is set to rise to US$945 from US$864 in 2008-09, an increase of nine percent. Farm output is expected to contract by 0.2 percent while maintain moderate growth. Moreover, the manufacturing is estimated to grow by strong 8.9 percent. “The stimulus seems to have succeeded and we should begin to phase it now,” Planning Commission Deputy Chairman Montek Singh Ahluwalia told The Hindu.

According to the CSO, farm and allied activities are predicted to decline by 0.2 percent compared to 1.6 percent growth during the previous year. There will be a strong growth to the manufacturing sector because of the government’s stimulus package.

Estimates also predict growth in the mining and quarrying industry by 8.7 percent compared to 1.6 percent a year ago. In addition, trade, hotel, transport and communication will increase by 8.3 percent while construction rises by 6.5 percent.