Mumbai: The Indian economy grew 9.6 per cent during fiscal 2006-07, up from 9.4 per cent in the previous year, the highest in 18 years, according to revised estimates released by the finance ministry.

"Gross domestic product (GDP) at factor costs at constant prices in 2006-07 is estimated at Rs28,64,309 crore as against Rs26,12,847 crore in 2005-06 registering a growth of 9.6 per cent during the year as against the growth rate of 9.4 per cent during the previous year," an official statement said today.

This prompted comments from finance minister P Chidambaram that the economy is poised to grow at around 9 per cent in the current fiscal as well.

"I still maintain that in the fiscal year '07-08 growth will be close to 9 per cent," he said.

Per capita income at current prices grew to an estimated 14.2 per cent to Rs29,642 in 2006-07 from Rs25,956 in the previous year.

The 9.6 per cent GDP growth during 2006-07 has been achieved due to high growth in mining and quarrying (5.7 per cent), manufacturing (12 per cent), electricity, gas and water supply (6 per cent) and construction (12 per cent), according to quick estimates released by the Central Statistical Organisation (CSO).

The all around improvement in the mining, manufacturing and services sectors also helped offset the slower growth in agriculture sector, the release said.

While the agriculture sector grew at 3.8 per cent, down from 6.1 per cent, manufacturing sector recorded 12 per cent growth against the 9 per cent growth recorded in the previous year.

At constant prices (1999-00), the share of agriculture, forestry and fishing in the GDP stood at 18.5 per cent in 2006-07, down from 19.6 per cent in the previous year.

The share of manufacturing sector in GDP rose to 15.4 per cent from 15.1 per cent during the previous year.  Likewise, mining and quarrying sector growth also improved from 4.9 per cent to 5.7 per cent.

Construction sector growth has been revised upward to 12 per cent, against 10.7 per cent estimated earlier.

The share of financing, insurance and real estate in the GDP also increased to 14.3 per cent in 2006-07, against 13.8 per cent in the previous year.

The share of food items in final consumption expenditure at current prices stood at 36.4 per cent in 2006-07, marginally up from 36.3 per cent in 2005-06.

The share of transport and communication went up to 17.5 per cent from 17.3 per cent during the previous year, while the share of gross rent, fuel and power consumption declined from 12.6 per cent in 2005-06 to 12 per cent in 2006-07.

In the current financial year (2007-08), the economy grew at 9.3 per cent in the first quarter and at 8.9 per cent in the second quarter.