Economy Surges On Manufacturing To Grow By 9.6 Pc In 2006-07

New Delhi (PTI): Recording another year of impressive performance, the economy grew by 9.6 per cent during 2006-07, leading to over 14 per cent increase in the per capital income, the government announced on Thursday.

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

While agriculture sector grew by 3.8 per cent, down from 6.1 per cent, manufacturing sector recorded 12 per cent growth, which is substantially higher than 9 per cent growth recorded in the previous year.

Likewise, mining and quarrying sector growth also improved from 4.9 per cent to 5.7 per cent, according to quick estimates for national income, consumption, expenditure, saving and capital formation.

The impressive showing was also reflected in improvement in per capital income, which increased to Rs 29,642 from Rs 25,956 during 2005-06.

The overall improvement in the performance could also be attributed to an impressive 35.9 per cent growth in capital formation that stood at Rs 14,87,786 crore during 2006-07.

Such 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.