Centre predicts 7.2 percent GDP growth in 2009-2010

New Delhi, Feb 8 (ANI): The Centre on Monday estimated that the economy would grow by 7.2 in the current fiscal compared to 6.7 percent growth that was witnessed in 2008-2009.

The projected GDP growth for the current financial year as estimated by the Central Statistical Organisation is lower than the forecasts of the Reserve Bank of India (RBI) and the Finance Ministry.

The Finance Ministry predicted GDP growth at 7.75 percent in the mid-term economic review, while the RBI pegged 7.5 percent GDP growth in its quarterly monetary policy review last month.

It is speculated that the economy would grow at a higher level in the second half than seven percent in the first half.

The data released on Monday gave indications that the agriculture and allied activities would shrink by 0.2 percent in the current fiscal compared to a 1.6 percent decline that was witnessed a year ago.

The estimated GDP growth in the current fiscal is likely top be driven by 8.9 percent expansion in the manufacturing sector against 3.2 per cent a year ago.

Trade, transport and communication would rise by 8.3 percent against 7.6 percent in the last financial year. Construction is predicted to rise to 6.5 perecent in the current fiscal against 5.9 percent witnessed last year.

Financing, insurance, real estate and business services are predicted to witness a fall in expansion and growth by 9.9 percent compared to 10.1 percent in the last financial year.

Community, social and personnel services are likely to witness a fall by 8.2 percent compared to 13.9 percent in the last fiscal year. (ANI)