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Growth rate could cross 9 per cent
8 December 2010: On the back of faster economic expansion in the first half, the growth rate could cross 9 per cent in the current fiscal itself and revert to the pre-crisis levels in India.
It is estimated that growth in 2010-11 will be 8.75 per cent with 0.35 per cent variation on either side. The range indicates the possibility of crossing the nine per cent mark this year itself.
With regard to inflation, which was the major worry of the government since more than a year, the Analysis said, it has started coming down and is placed at 8.6 per cent in October this year compared to 11 per cent witnessed in April 2010.
Contrary to estimates by various think tanks, the economy during second quarter expanded by 8.9 per cent taking the overall growth rate to the same level in the first half and raised hopes of 9 per cent growth in the current fiscal.
Having grown by over 9 per cent in three years in a row, the economic growth rate slipped to 6.7 per cent in 2008-09 on account of global financial meltdown.
The growth rate, however, picked up to 7.4 per cent in 2009-10 as a result of stimulus provided by the government and the Reserve Bank of India.
The economy, according to earlier estimates, was expected to grow by 8.5 per cent in the current fiscal rising to the pre-crisis level of 9 per cent in the next fiscal.
Source: Times of India