Indian Economy Registered 8% Growth Rate in 2009-10
Indian economy registered a growth rate of 8 percent in 2009-10 compared to 6.8 percent in 2008-09.
According to the Quick estimates of national income, consumption expenditure, saving and capital formation for 2009-10 released by the Central Statistical Organisation (CSO) on 31 January 2011 India's GDP growth stands revised upwards to 8 per cent for 2009-10. The GDP was revised to 8% from the earlier estimation of 7.4 per cent expansion. The country's GDP at factor cost at constant (2004-05) prices in 2009-10 is estimated at Rs 44.94 lakh crore as against Rs 41.63 lakh crore in 2008-09. At current prices it is estimated much higher at Rs 61.33 lakh crore as against Rs 52.82 lakh crore in 2008-09 to show an increase of 16.1 per cent for the year.The high GDP rate was attributed to growth in transport, storage and communication along with financing, insurance and personal services.
The CSO data estimated the per capita income at current prices is estimated at Rs 46492 during the year 2009-10 as against Rs 40605 for the previous year to post a growth of 14.5 per cent. The CSO data estimated the per capita income (per capita net national income at factor cost) in real terms (at 2004-05 prices) at Rs.33731 for 2009-10 as against Rs.31801 in 2008-09 to mark an increase of 6.1 per cent.
The gross domestic saving (GDS) at current prices in 2009-10 is estimated at Rs.22.07 lakh crore as against Rs 17.98 lakh crore in 2008-09 thereby constituting 33.7 per cent of GDP at market prices as against 32.2 per cent in 2008-09. The growth in GDS was attributed to the increase in the rates of savings of public sector from 0.5 per cent in 2008-09 to 2.1 per cent in 2009-10 and private corporate sector from 7.9 per cent in 2008-09 to 8.1 per cent in 2009-10. The rate of saving decreased from 23.8 per cent to 23.5 per cent in the hosehold sector. However in absolute terms, the saving of the household sector increased from Rs 13.31 lakh crore in 2008-09 to Rs 15.36 lakh crore in 2009-10.
Private Final Consumption Expenditure (PFCE) in the domestic market at current prices was estimated at Rs 3795901 crore in 2009-10 as against Rs 3266,461 crore in 2008-09. At constant (2004-05) prices, the PFCE was estimated at Rs 2857060 crore in 2009-10 as against Rs 2659152 crore in 2008-09. In terms of GDP at market prices, the rates of PFCE at current and constant (2004-05) prices during 2009-10 are estimated at 58.0 per cent and 58.7 per cent respectively. The per capita PFCE in the domestic market in 2009-10 was estimated to be Rs 32444 at current prices and Rs 24419 at constant (2004-05) prices as against Rs 28306 and Rs 23043 respectively in 2008-09.
Gross Domestic Capital Formation at current prices increased from Rs 1927107 crore in 2008-09 to Rs 2389213 crore in 2009-10 and at constant (2004-05) prices, it increased from Rs 1565007 crore in 2008-09 to Rs 1858659 crore in 2009-10. The rate of gross capital formation at current prices was 36.5 per cent in 2009-10 as against 34.5 per cent in 2008-09.
The estimates of GDP and other aggregates for the previous years were revised on account of using the new series of Wholesale price Index (WPI) with base 2004-05 and also subsequent revision in Index of industrial production (IIP).The revision was also made on account of use of latest available data on agricultural production, industrial production, government expenditure and also detailed and more comprehensive data available from various source agencies. The 8 per cent growth estimation by CSO manifests the stimulus provided by the Indian government through excise duty and service tax cuts yielded results.