Economy to grow 8% in FY ’11: Rangarajan

Economy to grow 8% in FY ’11: Rangarajan

New Delhi: The Indian economy will expand 8% in 2010-11 after growing between 7 and 7.5% in the current fiscal year to end-March, The Times of India reported on Saturday, quoting the Prime Minister’s economic adviser C Rangarajan.

“There is reason why I expect 8% growth in the next fiscal (year). Agriculture would improve with normal monsoon and it would add 0.5-1% in the GDP growth," the newspaper quoted him as saying.

India’s economy grew an annual 7.9% in the quarter through September, its fastest in 18 months, prompting the finance ministry to revise the growth forecast for the current fiscal year to around 8% from 7.0%.

The economy expanded 6.7% in 2008-09 (April-March), slower than the 9% or more in the previous three years.

Rangarajan also said the economy would return to an annual growth rate of 9% in the fiscal year to end-March 2012 on the back of an improvement in the world economy and global trade.