Indian economy performed better than the estimated 7.2 percent for the last fiscal. Government released data on Monday which showed that Indian economy grew by 7.4 percent in 2009-10. The major reason cited for this improvement is the double digit expansion in manufacturing sector and average performance by farm sector. Improvement in customer spending and business investments and rural economy growth despite the worst drought has enabled India to grow at its fastest pace in nearly two years.
Indian economy grew by 8.6 percent in the fourth quarter with good governance and consumer spending. According to Central Statistical Organization (CSO), this growth is attributed to growth in manufacturing by 16.3 percent and mining and quarrying by 14 percent. During the fourth quarter, the industrial growth also increased at about 13.3 percent while services sector witnessed a growth of 8.4 percent and agriculture grew by 0.7 percent.
According to finance minister Pranab Mukherjee, “It is a quite encouraging …so last quarter is 8.6 and about 7.9 was second quarter…3rd Quarter saw adverse impact of monsoon…on the whole it will be confirmed that it will be 7.2 plus.” Though investment activity has increased in the fourth quarter some doubt if the growth will support the forecasted economic growth of 8.5 percent for the year ahead. But the government is hopeful that a thrust in the infrastructure would keep the industrial growth and is also depending on a good monsoon to add on to the growth.

