New Delhi, May 31 (IANS) India posted an 8.4 percent growth in the gross domestic product (GDP) in fiscal 2005-06, exceeding forecasts of an 8.1 percent growth, according to the revised data on national income released Wednesday.

In the previous 2004-05 fiscal, India's economy grew 7.5 percent.

The Central Statistical Organisation (CSO), under the Ministry of Statistics and Programme Implementation, stated in revised estimates that the GDP showed a growth rate of 8.4 percent for 2005-06.

"The estimates have been revised incorporating latest estimates of agricultural production, index of industrial production and performance of key sectors like railways, transport other than railways, communication, banking and insurance and government expenditure," the official statement said.

The biggest boost came from the farm sector, which recorded higher than expected growth of 3.9 percent as against earlier expectations of 2.3 percent, data showed.

In the previous fiscal of 2004-05, the farm sector had registered a marginal growth of 0.7 percent.

India is targeting a farm sector annual growth of four percent to achieve an annual GDP growth of over 8.0, considering that agriculture provides livelihood to over 60 percent of the country's population and has a one-fifth share in the GDP.

The Other sectors recording 5.0 percent or more growth included 'manufacturing' (at 9.0 percent), 'electricity, gas and water supply' at 5.3 percent, 'construction' at 12.1 percent, 'trade, hotels, transport and communication' at 11.5 percent, 'financing, insurance, real estate and business services' 9.7 percent, and 'community, social and personal services' 7.8 percent, the official data showed.

What boosted the annual growth was the strong showing in the last quarter of 2005-06 fiscal.

In the January-March quarter the economy grew 9.3 percent compared with 8.6 percent in the corresponding quarter in the previous year and 7.5 percent during September-December, 2005-06.

Again the sectors that registered significant growth rates in the fourth quarter of 2005-06 over the corresponding quarter of 2004-05 fiscal are 'agriculture, forestry and fishing' at 5.5 percent, 'manufacturing' at 8.9 percent, 'electricity, gas and water supply' at 6.1 percent, 'construction' at 12.0 percent, 'trade, hotels, transport and communication' at 12.9 percent, 'financing, insurance, real estate and business services' at 10.5 percent, and 'community, social and personal services' at 7.6 percent.

Commenting on the revised growth rate, Finance Minister P. Chidambaram said the country would need to speed up economic reforms to sustain an economic growth of over 8 percent.

"We need to make larger capital investments, and such investments are possible only if reforms continue," he said.

Hinting at structural, legal reforms and administrative reforms, the finance minister said: "The government would remove hurdles that limit the flow of foreign direct investment."

The sectors like roads, telecom, seaports, power and airports would be special areas of focus, Chidambaram said.

The two areas that were causing concern were mining and power, as they hold potential to slow India's growth, he said.