It’s the most optimistic projection around. The IMF says India’s economy will grow 9.4% in 2010. That’s much higher than government own estimate for the fiscal year ending next March, which is 8.5%. Back in April, the I M F’s own forecast for India’s growth was 8.8%. The new figures are part of the IMF’s World Economic Outlook, and the organization has not provided details for its estimates.
And reacting to the IMF projection, the Planning Commission’s chief advisor Pronab Sen told Mint it appeared to be an overestimation. He said the second and third quarter of 2010 would see higher growth largely because of the base effect. The government says India’s economy grew at 8.6% in the January to March quarter.
Auto sales gathered speed in the first quarter, but could slow down in the coming months. Consolidated figures from industry body Siam show passenger car sales went up more than 33.43% to 433,641 units. And truck sales increased 56.34% to nearly 126,737 vehicles. Siam says higher commodity prices will put a strain on sales in the coming months. Of particular concern in natural rubber, the cost of which has gone up 40% in the first half of 2010. On the bright side, Siam says the increases in fuel prices will have only a short-term impact on vehicle sales.
Markets rebounded on Thursday on the back of a global rally. The Sensex shot up 181 to close at 17,652. And the Nifty jumped 56 to finish the day at 5,297.