Business And Leadership: Indian economy to grow by 7.2pc

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Indian economy to grow by 7.2pc

08.02.2010
The Indian economy is set to grow by as much as 7.2pc in the financial year ended 31 March, the country’s government has indicated.

The forecast for the fiscal year covering the 12 months to the end of March was contained in an estimate by India’s statistics office which will be used in drafting the country’s budget for next year.

It compared to a growth rate of 6.7pc during the 2008-2009 year, and confirms India is rebounding from the global economic downturn.

The forecast said the 7.2pc in GDP during 2009-10 would be largely due to the growth rates of over 5pc in the sectors of mining & quarrying, manufacturing, electricity, gas and water supply, construction, trade, hotels, transport and communication, financing, insurance, real estate and business services, and community, social and personal services.

According to the latest estimates available on India’s Index of Industrial Production (IIP), the index of mining, manufacturing and electricity registered growth rates of 8.3pc, 7.7pc and 6.1pc respectively during April-November 2009-10, rebounding strongly from growth rates of 3.4pc, 4.2pc and 2.8pc in these sectors during the April-November 2008-09 period.

The robust growth forecast has fuelled speculation that the Indian Government will shortly begin winding down the level of state support it is providing to the economy.

The Indian central bank has been even more optimistic for the country’s growth prospects, having previously forecast the economy to grow 7.5pc this fiscal year.

^{UN Photo/John Isaac}