The growth rate of Indian Economy witnessed a faster rate of growth in 2004-05 has been sustained in 2005-06, and improved upon.

The growth rate of GDP at factor cost has been revised upward from 8.4 per cent (estimated in May 2006) to 9.0 per cent.

The upward revision, reflects better coverage and estimation, resulting in an enhancement of the estimate of domestic product by Rs.9,193 crore in 2005-06.

In the same direction the Government has adopted policies which are intended to boost savings and investment. It is encouraging to note that there has been a rise in both savings and investment.

As to the statistics, the savings rate was 31.1 per cent in 2004-05 (revised from the earlier estimate of 29.1 per cent).

The savings rate in 2005-06 has increased to 32.4 per cent. Correspondingly, there is a rise in the investment rate too.

The investment rate in 2004-05 was 31.5 per cent (revised from the earlier estimate of 30.1 per cent), and this has increased to 33.8 per cent in 2005-06.