Economy to grow 8% in 2010-11: PMEAC
New Delhi: Indian economy would expand by 8 percent during fiscal 2010-11 and return to the high growth trajectory of nine percent a year later, Prime Minister's economic adviser C Rangarajan said on Friday.
"The economy would grow between 7 and 7.5 percent in the current fiscal, it would grow by eight percent in 2010-11 and in the year after that growth would be nine percent," he told a news agency.
The optimism of Rangarajan, Chairman of Prime Minister's Economic Advisory Council (PMEAC) and former Governor of the Reserve Bank, is based on firm recovery in the global economy and normal monsoon.
India's economic growth rate slipped from nine percent
to 6.7 percent during 2008-09 on account of the impact of the
global financial crisis. However, driven by stimulus packages
and signs of recovery in the international market, the growth
in the current fiscal is estimated to go up to 7.75 percent.
As regards the next fiscal, Rangarajan said, he had
reasons to expect a higher growth rate of 8 percent.
"There is reason why I expect eight percent growth in
the next fiscal. Agriculture would improve with normal monsoon
and it would add half to one per cent in the GDP growth," he
He added that the world economy and global trade would
improve by fiscal 2011-12 and in that year, India would post
nine percent growth.
Signs of recovery became more visible today as the growth
rate of India's exports turned positive in November after
registering degrowth for 13 consecutive months since October
2008 due to widespread recession in key overseas markets.