Panjim: The leading economic think-tank CMIE on Sunday pegged the economic growth at 7.5 percent for the current fiscal on the back of strong industrial growth-- slightly lower than the projections of Finance Minister Pranab Mukherjee.
"Growth of 7.5 percent possible is during 2009-10 as manufacturing is doing well," Centre for Monitoring Indian Economy (CMIE) chairman SA Dave told reporters today.
Dave further said the GDP could grow higher in the next financial year.
Recently, the Finance Minister pegged the GDP growth at 7.75 percent for this fiscal. The Government, in its mid-year review, too had projected a growth of around 7.25-7.75 percent for the fiscal.
On Friday, the multilateral lending agency Asian Development Bank had said India was poised for a strong recovery this year and urged policymakers to address rising inflation and widening fiscal deficit to insulate itself against future shocks.
"India`s economy is poised for a solid recovery in 2010 as the global financial crisis fades, but policymakers need to address inflation and the widening fiscal deficit to buffer it against the impact of future global shocks," ADB said.
Inflation has risen to 7.31 percent in December against 4.78 percent in the previous month while fiscal deficit is projected at 6.8 percent of GDP for the current fiscal.
Impacted by the global financial crisis, the economy grew by 6.7 percent in the last fiscal and by 6.1 percent in the first quarter of the current fiscal. However, beating all the projections, the economy registered a smart growth of 7.9 percent in the second quarter of the current fiscal.
Besides, the factory production in November expanded by 11.7 percent, the fastest in 25 months.