Buoyant India eyes nine percent growth in new forecasts
NEW DELHI: India's government forecast on Tuesday that economic growth this fiscal year could hit 9.0 percent as it lifted its projections.
The government said Gross Domestic Product (GDP) growth would be in a range of 8.40-9.10 percent in the year to March 2011, giving a mid-point projection of 8.75 percent-higher than the previous mid-point forecast of 8.5 percent. "The range indicates the possibility of crossing the 9.0-percent mark this year," it said, adding the wide estimate range was due to risk factors such as "the economic situation in the euro area turning for the worse".
The mid-year analysis for 2010-11 was presented in parliament by Finance Minister Pranab Mukherjee, who said he hoped inflation would fall from the current 8.58 percent to 6.0 percent by March.
India's economy grew a forecast-beating 8.9 percent year-on-year in the JulySeptember quarter, recent data showed.
"Sustaining such high levels of growth for a number of years, however, will require significant deepening of reforms initiative," said the ministry's analysis of the economic situation on Tuesday.
India posted scorching average annual growth of 9.5 percent between 2006 and 2008 before the global slump slowed expansion to 6.7 percent in 2008-09. The economy picked up pace last year to expand 7.4 percent.
The healthy figures came despite the rapid unwinding of massive fiscal and monetary stimulus measures put in place in the aftermath of the global crisis to help shield the country from its impact. -Afp
MUMBAI: France's President Nicolas Sarkozy (R) greets relatives of victims during a ceremony in tribute to the victims of the 2008 Mumbai attacks, in Mumbai on Tuesday. Sarkozy, one of a stream of world leaders coming here seeking lucrative deals for their struggling economies, proposed a "total partnership" with India in its growing needs for civilian nuclear power. -Afp