India enjoys burgeoning economy

Mumbai is one of Asia's key financial districts
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Thursday, 30, Nov 2006 10:25

Economic growth in India has outstripped expectations, increasing by over nine per cent in the period from July to September 2006.

Indian GDP grew by 9.2 per cent in the year up to the second quarter, with the south Asian country's economy increasing by 9.1 per cent in the first half of the financial year, marking the highest level since 1992.

The strong economic growth has been put down to notable gains in manufacturing output. Figures show that manufacturing is accountable for 17 per cent of its GDP.

Output rose by 11.9 per cent from July to September this year compared to 8.1 per cent during the same period in 2005.

Conversely, growth in India's agricultural sector has seen a decline, slowing to 1.7 per cent in the second quarter compared to four per cent in 2005. Power, gas and water industries saw growth of 7.7 per cent.

India is currently the fourth biggest economy in Asia. The economy has grown at an average rate of eight per cent over the previous three financial years.


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