Mumbai: After two years of economic slowdown, the Indian economy is on the rebound with three key sectors - industrial, services and manufacturing - expected to fare well, leading to an over 9% GDP growth in FY 11, a leading economic think-tank said.
With these three sectors projected to exhibit an improved performance this fiscal, the Centre for Indian Monitoring Economy (CMIE) has forecast that the domestic economy would grow at 9.2% this fiscal.
The growth rate is expected to be around 2% higher as compared to FY 10 when the domestic economy registered a 7.4% growth, it said in its latest report.
“We expect Gross Domestic Product (GDP) to grow by 9.2% in 2010-11 as compared to a 7.4% growth in 2009-10,” CMIE said in its report on the state of the domestic economy.
CMIE is maintaining a 9.2% growth in 2010-11 since March this year, it said.
India’s Central Bank has however, forecast an 8.2% economic growth in FY 11.
According to CMIE, the Indian economy had grown by over 9% between 2005-06 and 2007-08 and it is now returning to the same level after a two-year blip.
The report forcecasts a 9.6% growth for the Industrial sector (including construction) this fiscal as against the 9.2% clocked last fiscal.
“In fiscal 2010-11, growth in the manufacturing sector will be led by the food products segment, especially sugar and edible oil,” CMIE said.
At the same time, acceleration in consumption and investment growth in the current fiscal would contribute to a higher growth in consumer durables and capital goods output, respectively, the report stated.