It is a record growth rate that any Indian state would love to boast of. Western Indian state of Gujarat, headed by Chief Minister Narendra Modi has recorded the highest growth rate - 12 per cent - among the Indian states.

While India's economy is expanding at over 8 per cent, Gujarat has ended 2006-07 with a growth rate of more than 12 per cent.

Agriculture sector posted a robust 10.2 per cent growth, taking the overall economic growth of the state to 12.17 per cent in the last financial year, a Gujarat government press statement said here.

The state, which incurred 22 per cent higher expenditure than the original outlay in 2006-07, has been allocated Rs 16,000 crore (Rs 160 billion) for this fiscal. This is an increase of 25 per cent than the approved plan outlay of last fiscal.

Accolades for achieving the sterling growth rate has come for Gujarat from Planning Commission Deputy Chairperson Montek Singh Ahluwalia.

Ahluwalia complimented the state for the bold economic reforms and for working towards creating an investor friendly environment. He appreciated the revenue surplus budget of the state even after giving tax sops of Rs 400 crore (Rs 4 billion).

Gujarat Chief Minister Modi said the state has grown at 10.6 per cent for the last four years. From a revenue deficit of Rs 6,731.54 crore (Rs 67.32 billion) in 2001-02, the state recorded a surplus of Rs 1,802.85 crore (Rs 18.03 billion) in 2006-07, the chief minister pointed out.

In the state plan period, a relief of Rs 400 crore (Rs 4 billion) was granted in taxes for the current year. Allocation for the social sector increased by 41 per cent to Rs 6,265.05 crore (Rs 62.65 billion) from Rs 4,426.24 crore (Rs 44.26 billion).