Mumbai: An economic revival in the manufacturing, agricultural and export-oriented services sectors, especially IT, are expected to help the country clock a growth of 8.5% in Q4 FY10, a senior government official said.
“In the third-quarter (of FY10), the economy did not do well but in Q4, there was a bounce-back and the country seems on course to clock an 8.5% GDP growth in Q4 FY10,” chief economic adviser in the Finance Ministry, Kaushik Basu, told reporters at an event organized by the Bombay Chamber of Commerce and Industry, in Mumbai on Monday.
The country’s inflation would be on the higher side, Basu said, adding that “our core inflation, excluding food and fuel prices, is around 5.5%.”
The wholesale price index-based inflation data for March will be released this week.
In order to achieve a 7.2% growth for FY10 as estimated by the Central Statistical Organization, the economy must grow over 8% in the fourth quarter.
For the next fiscal, the overall GDP growth is likely to be around 8.5% on the back of improving economic prospects, and could go up to 10% in the year after, Basu said.