Indian Economy Records 9% Growth

04 June 2007

NEW DELHI: The Indian economy grew by 9.4% over the last fiscal year according to figures recently released by the country's Central Statistical Organization.

A boom in the manufacturing and services sectors were cited as the main drivers of growth, which has topped 8% in each of the last four years, and reached a total of 9% for the year before last.

Some economists, however, are sounding a note of caution, as the combination of higher interest rates - intended to limit inflation - and the strengthening of the rupee could hit Indian exports.

Similarly, an economic slowdown in the US - particularly in the mortgage market - could pose future problems for India's highly profitable technology sector.

Most forecasters, however, remain optimistic that 8% remains a realistic benchmark for growth over the next few years.

Data sourced from Wall Street Journal Online. additional content by WARC staff