Mumbai: The Indian economy grew 9.4 per cent in 2006-07 against 9.0 per cent in the previous year, aided by robust growth in manufacturing and services sector, despite a slowdown in agriculture and construction sectors.

Propelled by high growth in services and manufacturing sectors, coupled with an appreciating rupee, India''s economy has swelled to a trillion dollar - making it the 12th nation to reach this milestone.

The country''s economy at market prices stood at Rs41,25,724 crore at the end of fiscal 2006-07 - nearly $1,010 billion at the current exchange rates.

While at factor cost the economy expanded by 9.4 per cent to Rs37,43,472 crore, at market prices the growth translated to over 15 per cent.

The economy''s trillion-dollar milestone comes just three days after the Indian stocks'' combined value crossed this level. The market capitalisation as of March-end was $805.2 billion.

There was, however, a dip in the growth of gross domestic product which drifted to 9.1 per cent in Jan-March 2006-07 against 10 per cent in the same quarter of the previous fiscal.

GDP growth during the fourth quarter was higher sequentially as it was 8.7 per cent in the previous quarter of 2006-07.

Manufacturing sector grew by 12.3 per cent in 2006-07 against 9.1 per cent in the previous year, while trade, hotels, transport and communication grew by 13 per cent against 10.4 per cent.

Agriculture and allied sector''s growth, however, slowed down to 2.7 per cent against six per cent and construction to 10.7 per cent against 14.2 per cent.

India enjoyed its second-fastest year of growth since independence last financial year, according to government statistics released this afternoon showing the economy expanded by 9.4 per cent in the 12 months to March 2007.

The full year figures were revised up from the government''s ''advance estimate'' of 9.2 per cent, issued in February, largely on account of sizeable upward adjustments to growth rates in the first half of the year.

Growth in the first quarter of last year was revised up by nearly an entire percentage point to 9.6 per cent, from 8.8 per cent, and then accelerated further in the second quarter, covering July-September, to 10.2 per cent, from 9.2 per cent.

Growth in the last quarter of the financial year came in lower than expected at 9.1 per cent, but nonetheless was more rapid than that seen in the previous quarter, suggesting tighter monetary policy had yet to have much impact.

India enjoyed its second-fastest year of growth since independence last financial year, according to government statistics released this afternoon showing the economy expanded by 9.4 per cent in the 12 months to March 2007.

India has only grown faster than this in one year since the series began in 1950-1, according to Robert Prior-Wandesforde, an economist at HSBC. In 1998-99, growth surged to 10.5 per cent before falling back in the early years of this decade.

The central bank has raised its main lending rate five times in the past year and increased banks'' cash reserve requirements three times since December, to slow down loan growth and help rein in prices.

Even though inflation is now coming down, most economists believe that the economy is continuing to grow well above its long-term sustainable rate and that further tightening of monetary policy and of banking reserve ratios lies ahead.