Commodity Online
NEW DELHI : The Reserve Bank of India on Thursday said India’s GDP growth continues to be one of the highest in the world despite moderation in agriculture, industry and services sectors.

In its Macroeconomic and Monetary Developments mid-term review 2008-09 released here, the RBI said the moderation seen in core sectors in FY 09 reflected a cyclical downturn and is unlikely to pose challenges to the economy with the structural drivers of growth continues to be favorable.

The RBI said because of lower growth in both manufacturing and electrcity sectors, the year-on-year expansion in the industrial production decelerated to 4.9 per cent during April-August 2008-09 period as compared to 10 per cent in the year-ago period.

Similarly, the core infrastructure sector recorded a lower 3.4 per cent growth during the period as compared to 7.1 per cent in the same period in last year primarily owing to a sharp deceleration in the electricity sector and subdued performance of petroleum refinery products, the report said.