India's GDP to grow at 7.6% in FY16: CSO

The 7.6 per cent growth would be the fastest pace in the last five years after a previous high of 8.9 per cent in 2010-11.

The CSO has also revised upwards the GDP growth estimates for April-June and July-September quarters to 7.6 per cent and 7.7 per cent from earlier calculation of 7 per cent and 7.4 per cent, respectively.

The manufacturing sector is estimated to grow at 9.5 per cent in 2015-16, up from 5.5 per cent a year ago while agricultural growth has been projected at 1.1 per cent as against decline of 0.2 per cent a year ago.

But the growth of mining and quarrying sector, electricity and power supply and other services is likely to witness deceleration during the current financial year.

Reacting to the CSO's projections, the Finance Ministry said the projected 7.6 per cent growth rate for current fiscal is satisfactory and reflects the policies and reform measures undertaken by the government in last 19 months.

“There is improvement in the numbers which is quite satisfying. The policies and the reform measures the government has undertaken in last one and half years are beginning to show results. The policies and reform measures will continue," Economic Affairs Secretary Shaktikanta Das told reporters in New Delhi.

"Especially satisfying and noteworthy is the industrial growth with special focus on manufacturing. Agriculture continues to be a matter of concern because of consecutive drought. Overall the direction of the numbers is very positive," Das said.

The CSOs estimate of 7.6 per cent growth in current fiscal is marginally higher than the projection by RBI, Finance Ministry and IMF. (SH)

Fibre2Fashion News Desk – India