Indian economy grows by 7.1% in 2008-2009 fiscal year

Special Report:Global Financial Crisis

NEW DELHI, Feb. 9 (Chinese media) -- The Indian economy is expected to grow by 7.1

percent in the 2008-2009 fiscal year, slower than last year's 9 percent and the

lowest in six years, said official projections of national income published

Monday.

The 2008-2009 fiscal year started on April 1, 2008 and ends on March 31,

2009.

The global financial crisis severely hit manufacturing, financial services

and farm sector output of India over the past year, while mining and other

services may help stimulate growth, said the Central Statistical Organization in

a release.

Indian Planning Commission Deputy Chairman Montek Singh Ahluwalia told the

media that whether or not growth will slow down further this year would depend

on continuation of fiscal stimulus.

But he said Indian economy is expected to perform better than most other

economies in the world and the outcome of this fiscal year conforms with

projected rates or higher.

Farm sector output is projected to grow by 2.6 percent in the fiscal year ,

slower than last fiscal year's 4.9 percent, manufacturing 4.1 percent, down from

8.2 percent last fiscal year, construction 6.5 percent down from last fiscal

year's 10.1 percent, while financing, insurance, real estate, business services

by an average of 8.6 percent against 11.7 percent, said the release.