The economy registered the decade's highest first-quarter growth during the current financial year at 8.9% on impressive showing by the manufacturing and services sectors."This is the highest first quarter growth since 2000-01," an exuberant Finance Minister P Chidambaram told reporters shortly after the GDP data was released.He assured that credit to the manufacturing sector, which grew by 11.3%, would neither be "delayed nor denied." Chidambaram wanted players other than industrial houses to chip in for boosting manufacturing growth further to make India a leader in at least 12 areas of activity.The finance minister attributed the robust GDP growth in first quarter to 31% rise in bank credit, 36.2% growth in commercial vehicles, 32.2% increase in passenger traffic by the aviation industry and 48.9% jump in telephone connections.Services grew by 10.6% in Q1 of the current fiscal "without government intervention," the finance minister said.Agriculture grew by a flat 3.4%, chipping in 19.1% to overall GDP growth. Except for electricity and construction, which slowed down to 5.4% and 9.5% from 7.4% and 12.4%, respectively, every sector recorded positive growth.The finance minister said growth in the construction sector was lower than last year, but did not indicate poor performance. "It was relatively less than last year, but 9.5% on the base of 12.4% is not poor performance," he said.Updated at 1300 hrs: The economy grew by 8.9% in the first quarter (April-June) of this fiscal when compared with a growth of 8.5% in Q1FY06.In rupee terms, GDP at factor cost stood at Rs 6,56,064 crore in the first quarter this fiscal as against Rs 6,02,476 crore in April-June 2005-06. GDP, at factor cost in current prices, in Q12006-07 is estimated at Rs 8,35,109 crore as against Rs 7,34,510 crore in Q12005-06 - an increase of 13.7%.
