THE GROSS domestic product clocked a robust growth of 8.9 per cent in the first quarter of the current fiscal year over the same period last year, aided by a strong performance in the manufacturing sector, the government said on Friday.
The government expects a GDP growth of 8 per cent this year. The growth rate in April-June has set the pace for it and given a positive indication that tax revenues can turn buoyant. The news came as the government was grappling with rising expenses, both in development-oriented plan spending and unproductive non-plan spending, which threaten possible slippages in meeting fiscal- and revenue-deficit targets.
While agricultural sector was stagnant at 3.4 per cent growth in the first quarter, the manufacturing sector made up with a healthy 11.3 per cent growth over the period a year ago. "This is the highest quarterly growth recorded in the past several years," said Finance Minister P. Chidambaram.
