New Delhi: India’s economy will grow by 6.75% in the fiscal to 31 March and 8% in 2010-11 on the back of increased consumption and private investment, the International Monetary Fund (IMF) said.
“Private consumption would benefit from better employment prospects and less uncertainty and investment would be boosted by robust corporate profits, rising business confidence and favourable financing conditions,” IMF said on Thursday.
IMF expects agricultural growth to contract by one percentage point in the current fiscal due to a deficient monsoon last year that affected the summer crop, but said non-farm growth was likely to gather momentum.
The Reserve Bank of India has projected that the country’s economy will grow by 7.5% in 2009-10. The World Bank has predicted a 7.5% growth in the year beginning 1 April.