New Delhi, Jan 31 (Agencies): In a heartening development that will bring some smile to the inflation and price-hike battered Government, the Indian economy grew at 8 per cent during the financial year ended March 2010, higher than 7.4 per cent estimated earlier.

Better growth suggests that India is recovering fast from the impact of the global financial crisis, which dragged down the GDP to 6.8 per cent during the fiscal 2008-09, from over 9 per cent recorded in the preceding three years.

Although a higher growth in 2009-10 will have an adverse statistical impact on the performance of the current fiscal due to high base effect, experts feel that 2010-11 will
go on to record a growth rate of 8.5 per cent.

"The growth rate of 8 per cent in the GDP during 2009-10 has been achieved due to high growth in manufacturing (8.8 per cent), financing, insurance, real estate & business
services (9.2 per cent), transport, storage and communication (15 per cent), community, social and personal services (11.8 per cent)," the official data showed.

"We had projected the GDP growth rate for the current fiscal at 8.5-8.7 per cent. With the upward revision in the FY'10 GDP numbers, we expect the GDP of FY'11 to be in the lower end of the range," ICRA Economist Aditi Nayar said.

The Indian economy is projected to grow at 9 per cent in FY’10. It grew at 8.9 per cent in the first half of the current financial year which ends in March.

In addition, the GDP growth estimate for FY2008-09 has been revised slightly upward to 6.8 per cent from the previous estimate of 6.7 per cent.

Agriculture sector recorded 0.4 per cent growth in FY2009-10 after witnessing a 0.1 per cent decline in FY2008-09, the data showed.

The 8 per cent growth shows that stimulus provided by the government through excise duty and service tax cuts has yielded results as manufacturing, which bore the brunt of the slowdown, posted 8.8 per cent growth in 2009-10 against over 3 per cent a year ago.

The country's per capita income grew by 14.5 per cent to Rs 46,492 in 2009-10 from Rs 40,605 in the year-ago period.