Economy may grow faster than forecast this fiscal: Montek

Economy may grow faster than forecast this fiscal: Montek

New Delhi: India’s economic growth forecast for the year to March 2010 may have to be revised upwards as data showed a faster expansion in September quarter, a top policy adviser said on Monday.

Planning Commission deputy chairman Montek Singh Ahluwalia said there was no serious concern on inflation as of now and conventional monetary policy was unlikely to be effective in curbing food price rise.

The economy grew by 7.9% in the quarter through September from a year earlier, shattering forecasts as stimulus measures boosted demand and manufacturing activity surged, data showed on Monday.

“It is difficult to project what will happen in the rest of the year. But this performance does suggest that there may well have to be an upward revision in the GDP growth of 6.5% which has been projected so far," Ahluwalia said referring to the forecast of prime minister’s panel.

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