India may keep growth target at 8.5 percent

NEW DELHI - The Indian government is likely to keep its economic expansion target unchanged at 8.5 percent for the fiscal 2010-11 in the advance estimates to be released Monday.

The ministry of statistics is scheduled to announce the advance estimate of economic growth for the current fiscal Monday. Informed sources say it is likely to peg the economic growth at 8.5 percent, consistent with the budgetary estimate as announced by Finance Minister Pranab Mukherjee.

The Indian economy grew 8.8 percent and 8.9 percent in the first and second quarter, respectively, of the current financial year.

The GDP growth is likely to moderate slightly in the third and fourth quarters keeping the overall economic growth at 8.5 percent.

Gross domestic product (GDP) growth for 2009-10 has been revised upward from 7.4 percent to 8 percent, according to the quick estimates of national income released recently by the Central Statistical Organisation.

The government’s statistical office also revised GDP growth for fiscal 2008-09 from 6.7 percent to 6.8 percent.