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India economy to grow 8 pct in FY '11, adviser says-report

Published 01/02/2010, 01:09 AM
Updated 01/02/2010, 01:12 AM

NEW DELHI, Jan 2 (Reuters) - The Indian economy will expand 8 percent in 2010/11 after growing between 7 and 7.5 percent in the current fiscal year to end-March, The Times of India reported on Saturday, quoting the prime minister's economic adviser C. Rangarajan.

"There is reason why I expect 8 percent growth in the next fiscal (year). Agriculture would improve with normal monsoon and it would add 0.5-1 percent in the GDP growth," the newspaper quoted him as saying.

India's economy grew an annual 7.9 percent in the quarter through September, its fastest in 18 months, prompting the finance ministry to revise the growth forecast for the current fiscal year to around 8 percent from 7.0 percent.

The economy expanded 6.7 percent in 2008/09 (April-March), slower than the 9 percent or more in the previous three years.

Rangarajan also said the economy would return to an annual growth rate of 9 percent in the fiscal year to end-March 2012 on the back of an improvement in the world economy and global trade. (Reporting by Rajesh Kumar Singh; Editing by Jerry Norton)

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