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FY06 GDP growth seen above 8%

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Press Trust of India New Delhi
The government today projected a higher economic growth of 8.1% for the current fiscal as against a growth of 7.5% in 2004-05 - far exceeding expectations of the finance ministry and the Reserve Bank of India.

The Central Statistical Organisation's quick estimates released today said that higher growth would be driven by 9.4% growth in manufacturing and over 8% growth inthe  services sector.

"The GDP growth is expected to be better also due to a good monsoon that will push up farm output by 2.3% this fiscal after a lacklustre performance of 0.7% in 2004-05," an official statement said.

Enthused by the higher growth projection, Finance Minister P Chidambaram said the Sensex crossing 10,000 points and the growth projection of 8.1% was a "heady mixture".

"Sensex reflects the business confidence and strong fundamentals of the economy," he said, adding sound monetary and fiscal policy will bring growth.

 
 

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First Published: Feb 07 2006 | 5:15 PM IST

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