The government will announce the gross domestic product (GDP) growth estimates for 2009-10 on Monday as hopes of a sustained recovery in the Indian economy have sprung anew with a slew of recent numbers showing robust growth in most sectors, although prices remain a key concern.
According to advance estimates announced by the Central Statistical Organisation (CSO) in February, the economy is set to grow by 7.2 per cent in 2009-10. The economy had slowed to 6.7 per cent in 2008-09 after growing at close to 9 per cent for four straight years before a financial crisis in the United States roiled the global economy.
There are visible signs of economic recovery having set in. Will they play the right number?
Car sales grew nearly 40 per cent in April after having recorded healthy sales in the last few months.
Industrial output grew by 10.4 per cent in 2009-10 and consumer durables production grew by over 30 per cent in the last five months, perhaps indicative of higher purchases of televisions and refrigerators and also growing consumer appetite.
The recovery is anchored on the renewed momentum in the manufacturing sector; and is accompanied by the pickup in the growth rate of gross fixed capital formation, which had declined significantly in 2008-09.
Capital goods output has grown over 25 per cent in the last three months — a sign of greater investment activity.
“In the medium term, with a pickup in the global economy and with focussed attention on critical areas, it should be possible to scale up the growth rate to double digit levels,” finance ministry official said requesting anonymity.