Mumbai: Projecting a “small” recovery in industrial performance, the Mumbai-based economic think-tank Centre for Monitoring Indian Economy, or CMIE, has pegged the Gross Domestic Product (GDP) growth for the next fiscal at 7%.
“A continuation of growth in agriculture, a small pickup in industry and a slowdown in the services sectors is expected to result in a GDP growth of 7.0% during 2009-10,” CMIE said in a release.
This rise is expected to translate into a 7.1% growth estimated for 2008-09, it added.
The think-tank said the industrial sector, which was hit hard by the global liquidity crisis in the third quarter of 2008, is expected to recover gradually in 2009-10 and register a 6% growth.
“The industrial sector faces no supply constraints as new capacities worth Rs5 lakh crore are expected to be commissioned in 2009-10,” the release said.
A number of new capacities that were scheduled to be completed during 2008-09 are now expected to be completed in 2009-10, it added.
Though the industrial sector would face a contraction in demand from the international markets, lower interest rates and inflation would help in reviving the demand momentum.
It expects agricultural sector to grow by 2.4% in 2009-10, recording a positive growth for the seventh consecutive year.