The government on Tuesday projected a higher economic growth of 8.1 per cent for this fiscal from 7.5 per cent in 2004-05, far exceeding expectations of the finance ministry and Reserve Bank of India.
The Central Statistical Organisation's quick estimates released here today said that higher growth would be driven by 9.4 per cent growth in manufacturing and the booming over 8 per cent growth in services sector.
The GDP growth is slated to be better also due to a good monsoon that will push up farm output by 2.3 per cent this fiscal after a lacklustre performance of 0.7 per cent in 2004-05.
Enthused by higher growth projection, Finance Minister P Chidambaram said the Sensex crossing 10,000 points mark and the growth projection of 8.1 per cent was a 'heady mixture.'"Sensex reflects the business confidence and strong fundamentals of the economy," he said, adding sound monetary and fiscal policy will bring us growth.