GDP India 2006

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The summary of GDP India 2006 indicates the developmental factors that contributed to the overall economic growth of India. The growth story of GDP India 2006 covers different sectors of Indian industry. The period after 1990, witnessed progressive increase in the annual average Gross Domestic Product (GDP) of the Indian economy hovering around 4.5% to 5%. The astronomical rise of Indian Information Technology, Indian BPO and the Indian telecommunication industry, propelled the growth of GDP of India to around 6%, during the period from 1988 to 2003. Thereafter, the average GDP of India 'at cost factor' reflected a steady growth trend. The growth of Indian GDP in 2006 was spearheaded by the service and manufacturing industry. After a long lull period, the agriculture sector of India registered a strong growth of 4%.

In the year 2006 there was a stupendous economic growth and the growth story still continued in the following financial year. Further, the analysis of the key points of the GDP India 2006 reflects the effects of all the parameters on the development of Indian economy in the financial year 2006-2007. This is done by quantifying the key parameters responsible for the growth of India's GDP in the financial year 2006-2007.

The snapshots of the economy of India in 2006 are as follows -

The Gross domestic capital formation in 2005-06 grew by 23.7%
FDI amounted to US$12.5 billion and outpaced portfolio investment of US$6.8 billion
Central Public Sector Enterprises to invest Rs.165, 053 crore in 2007-08
New 162 production sharing contracts awarded to Petroleum and Natural Gas sector
SMEs witnessed steady increase in outstanding credit
Foreign trade and merchandise exports expected to cross US$125 billion by the end of the fiscal
Provision for tourist infrastructure increased to Rs.423 crore
Bank's differential rate of interest scheme provided finance at the rate of 4% to weaker sections
The regional rural banks to open at least one branch in 80 uncovered districts in 2007-08
Permanent Account Number (PAN) made sole identification number for all participants of capital market
Seven ultra mega power projects were under process
Provision for national highway development programme to be increased to Rs.9, 945 crore
Farm credit target of Rs.225, 000 crore was allotted for the financial year 2007-08 with an
35 projects have been completed in 2006-07 and additional irrigation potential of 900,000 hectares to be created and training of farmers arranged during the financial year 2007-2008
A pilot programme for delivering subsidy directly to farmers have been arranged
Loan facilitation through Agricultural Insurance and NABARD has also been facilitated
Corpus of Rural Infrastructure Development Fund to be raised
Defense expenditure allocation to increased to Rs.96, 000 crore
IT allocation for e-governance to increased from Rs.395 crore to Rs.719 crore
Exclusive health insurance scheme for senior citizens

The bullish run of the GDP India 2006 was led by the following sectors -

Information Technology
Information Technology Enabled Services
Telecommunications
Electronics and hardware
Oil and natural gas
Pharmaceuticals and biotechnology
Consumer durables
Retail
Textiles
Infrastructure
Construction
Airlines
Health care
Hospitality
Power and utilities
Transport and logistics

The stupendous rise of the Indian GDP during the financial year 2006 - 2007 can be credited to the simplified economic policy of the Government of India. These economic policies simplified the process of business registration, cross-border trade, and payment of taxes, eased access to credit and strengthened investor's interest. These liberal economic policies of Government of India accelerated the growth of Indian industries, especially manufacturing, construction, and service industry.

Last Updated on 04th July 2011