NEW DELHI: The Indian economy grew at 7.4 per cent in 2009-10, higher than the anticipated growth rate, mainly as a result of better performance of agriculture, mining and manufacturing sectors, and fuelling hope in official quarters that the economy may clock a growth rate of 8.5 per cent in the current financial year.

The last quarter of 2009-10 recorded a growth rate of 8.6 per cent with mining, manufacturing, electricity, construction, trade and financial services being the significant contributors to this growth. The Central Statistical Organisation (CSO) figures show GDP at factor cost at constant prices standing at Rs 44,64,081 crore as against Rs 44,53,064 crore projected in the advance estimates on February 8, 2010. The advance estimates had put GDP growth at 7.2 per cent in 2009-10.
The following are the growth rates as per the revised estimates at factor cost by virtue of economic activity: (The figures in bracket are the growth rates in 2008-09). See table.
In Q4FY10, mining and quarrying growth stood at 14 per cent; manufacturing at 16.3 per cent; electricity, gas and water supply at 7.1 per cent; construction at 8.7 per cent; trade, hotels, transport and communications at 12.4 per cent; and financing, insurance, real estate and business services at 17.9 per cent.
Three conclusions are obvious from this.  First, all sectors have performed significantly better in 2009-10, sans ‘financing, insurance, real estate and business services,’ and ‘community, social and personal services.’
In 2008-09, the GDP growth stood at 6.7 per cent and thus the jump in this growth is 0.7 per cent, notwithstanding the impact of the global slowdown on the Indian economy and the floods and drought in many parts of the country.
The second conclusion is that in the last quarter, most critical sectors have registered a robust growth rates with the star performer being manufacturing. The third conclusion is that the Indian economy is on a sound footing with most crucial sectors consistently doing well and recording decent growth rates.
Sounding a note of optimism, Finance Minister Pranab Mukherjee exuded hope that the growth momentum would be sustained and the economy would expand at 8.5 per cent in the current financial year.
The markets greeted the GDP data well. They opened in the green on positive cues from Asian peers. The Sensex opened at 16,872 and surged as the government announced a robust growth in GDP numbers.