No stopping Indian juggernaut

IT IS happy days for the Indian economy. A day after the BSE Sensex crossed the 10,000 mark, the government's Central Statistical Organisation projected an economic growth of 8.1 per cent for 2005-06.

IT IS happy days for the Indian economy. A day after the BSE Sensex crossed the 10,000 mark, the government's Central Statistical Organisation projected an economic growth of 8.1 per cent for 2005-06.

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The CSO's forecast -- up from 7.5 per cent in 2004-05 -- exceeds the expectations made public by even Finance Minister P. Chidambaram and the RBI in the recent past.

The CSO's quick estimates released on Tuesday said the higher growth would be driven by 9.4 per cent growth in manufacturing and the booming over 8 per cent growth in services sector. With a pick-up in agriculture acting as a catalyst, it is expected that agri output will be around 2.3 per cent, up from a poor 0.7 per cent in 2004-05.

Chidambaram, in his reaction, said the Sensex crossing 10,000 points and a growth projection of 8.1 per cent was a "heady mixture".

"The Sensex reflects the business confidence and strong fundamentals of the economy," he said. The minister, however,
said the people should take informed decisions before making investments.