India has registered its second fastest annual growth rate since freedom and now the pace of the growth rate has touched 9.4 per cent.The report has indicated an advancement estimate of the growth rate for the 12 months to March to 9.2 per cent.

India’s GDP rate touched 9.4 percent in 2006-07 because of strong performances showed by manufacturing and services sectors. This is being said as the fastest growth in 18 years and second best performance since Independence. The GDP had expanded by 9 percent in 2005-06 and 7.5 percent in the year before.

The best part of the story is that the much-debated high inflation is now coming down. According to the experts, Indian economy is rightly going towards positive direction and it would grow well with its long-term sustainable rate. However, they also have given indication that the government and the Reserve Bank of India would take further tough steps to tighten monetary policy and banking reserve ratios in coming future.

According to the data, in the practice to check growing inflation rate, the RBI has been raised its key lending rate by 150 basis points to 7.75 per cent since January 2006. India had registered growth rate better than current rate in 1998-99 when the Indian economy had showed growth rate at 10.5 per cent.

The data says that India has registered the average annual GDP growth rate of 8.6 per cent in last four years that transformed Indian economic potential as other great world economies. Now, the RBI has expected that economy will grow at the rate of 8.5 per cent in 2007-08.

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