India forecasts growth of 8.8% Options

[Tenjikuronin]

India forecasts growth of 8.8%
By James Lamont in New Delhi

Published: February 26 2010 02:00 | Last updated: February 26 2010 02:00

The Indian economy will sweep aside the ill effects of the global economic downturn to grow by as much as 8.75 per cent in the coming fiscal year, the country's finance ministry predicted yesterday.

The annual Economic Survey, one of New Delhi's most important policy documents, forecast that Asia's third largest economy would return in the fiscal year beginning in April to the high-growth trajectory it enjoyed before the crisis.

But the report, led by Kaushik Basu, the government's chief economic adviser, warned that double-digit food inflation was a "major concern" and urged serious policy initiatives to address faltering agricultural growth. Farm production fell 0.2 per cent this year in a country where more than 60 per cent of the 1.2bn population earn their living from the rural economy.

The analysis of India's economic performance came out a day before a crucial national budget expected to signal the withdrawal of fiscal stimulus measures as part of an effort to narrow the widest fiscal deficit for 20 years.

Pranab Mukherjee, the finance minister, said India had shaken off the "despondency and gloom" that had pervaded the economy a year ago as the financial crisis was felt in big emerging markets. In the last quarter of the 2008-09 fiscal year, growth had slumped to 5.8 per cent from earlier highs of near 9 per cent. Growth this year is estimated at 7.5 per cent.

"We began the [current] fiscal year with a sense of uncertainty; we end it with confidence," he said as the Economic Survey was presented in parliament.

The confidence in the domestic economy is in part based on a savings rate of 32.5 per cent and an investment rate of 34.9 per cent that has propelled India among the fastest growing nations. The finance ministry has also taken satisfaction in India becoming the 10th largest gold holder with 557.7 tonnes of bullion.


http://www.ft.com/cms/s/0/41f76ee6-2278-11...144feab49a.html

[Perseusstar]

Great news!

[KraterosHellas]

for a 1.2 billion country, this is HUGE.

[4tunekuki]

DO NOT TROLL.

This post has been edited by Tenjikuronin: Aug 25 2010, 09:25 PM