Indian economy expected to cross nine percent growth in 2010-11

Tuesday, December 7, 2010

NEW DELHI - The Indian economy may cross the nine per cent growth mark this year itself.

This was indicated in the Mid-Year Analysis, tabled in the Lok Sabha by Finance Minister Pranab Mukherjee in Parliament today.

It is estimated that growth in 2010-11 will be 8.75 percent with 0.35 percent variation on either side.

“Sustaining such high levels of growth for a number of years, however, will require significant deepening of reforms initiative,” said Finance Ministry’s analysis of the economic situation.

Contrary to estimates by various think tanks, the economy during second quarter expanded by 8.9 percent taking the overall growth rate to the same level in the first half and raised hopes of nine percent growth in the current fiscal.

Having grown by over nine percent in three years in a row, the economic growth rate slipped to 6.7 percent in 2008-09 on account of global financial meltdown.

The growth rate, however, picked up to 7.4 percent in 2009-10 as a result of stimulus provided by the government and the Reserve Bank of India (RBI).

According to earlier estimates, the economy was expected to grow by 8.5 percent in the current fiscal rising to the pre-crisis level of nine percent in the next fiscal. (ANI)

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