Thursday, December 9, 2010

India to boom at over 9 percent; inflation to dip to 6 percent

Bangalore: Overcoming the impact of global economic recession, Indian economy is poised to achieve 9 percent growth in the current financial year itself driven by robust performance of agriculture and industry sectors.

In its mid-year analysis of Indian economy, the government said high inflation, which was a major concern, has started declining and hoped that it may fall to 6 percent by March, 2011 from over 8 percent now."The very rapid 8.9 percent growth in GDP recorded in the first half of 2010-11 raises the possibilities of a faster recovery to the pre-crisis level. It is estimated that growth in 2010-11 will be 8.75 percent with variation of 0.35 per cent on either side," the analysis said.The government has, however, made a case for deepening strengthening of economic reforms to sustain high growth rate and raising it further to double digit level in the medium to long term.

The government expects divestment receipts from sale of PSU shares to cross  40,000 crore ( 400 billion) target, the mid-year analysis said.Immediately after tabling the analysis in Parliament, Finance Minister Pranab Mukherjee told reporters, "I am hoping that inflation will come down to 6 per cent by March 2011." 

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