India's GDP estimated at 7.1% for 2008-09

As per the Advance Estimates of GDP for 2008-09 released by the Central Statistical Organisation on 9, February, 2009, the growth of GDP at factor cost (at constant 99-2000 prices) is estimated to grow at 7.1% during the year. The growth of GDP during 2007-08 (Quick estimates) was 9.0%.

As per the above estimates, the growth rate for Agriculture, Industry and Services is estimated to be 2.6%, 4.8% and 9.6% respectively in 2008-09. In the quick estimates for 2007-08, the corresponding growth rates for these three sectors were 4.9, 8.1 and 10.9% respectively.

Viewed from the demand side, the growth in Private Final Consumption Expenditure is expected to moderate to 6.7% in 2008-09 from 8.1% in 2007-08. The growth in Government Final Consumption Expenditure is estimated to increase from 7.4% in 2007-08 to 16.8% in 2008-09. Growth in Gross Fixed Capital Formation is anticipated to decline to 8.9% from a 12.9% in 2007-08. This increase in growth of Government Final Consumption Expenditure will offset partially the decline in Private Final Consumption Expenditure and would result in GDP growth at constant market prices to touch 7.1% in 2008-09.

The Per Capital income at current prices is estimated to grow at 14.4% during 2008-09 to reach Rs 38,084 as compared to a growth of 12.7% during 2007-08. At constant prices the per capita income is expected to grow at 5.6 percent in 2008-09 as compared to a growth of 7.6 percent in 2007-08.

Source : Equity Bulls

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