Buoy­ant In­dia eyes nine per­cent growth in new fore­casts

The Pak Banker - - International3 -

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

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