Indian economy is expected to maintain the eight-plus growth trajectory in FY’12 with its real GDP projected to grow by 8.8 per cent during the fiscal, a leading economic think-tank said here on Monday.
“We project that real GDP will expand by 8.8 per cent during the fiscal (2011-12),” the Centre for Monitoring Indian Economy (CMIE) said in its latest monthly review of the country’s economy here today.
The domestic environment is conducive for growth, private final consumption expenditure is projected to grow by a healthy 7.5 per cent and gross fixed capital formation by 15 per cent, it said.
“It is assumed that the south-west monsoon will be normal for the second consecutive year in 2011,” CMIE said.
On the downside risks, it said that these relate mainly to poor rainfall and to the performance of the global economy.
In FY 11, India’s economic performance has been robust and real GDP is estimated to have grown by nine per cent, it said.
“This has been powered by a rebound in the agricultural sector following the drought in 2009-10, and a sharp pick up in private consumption and gross fixed capital formation,” CMIE said.
According to the think tank, the agricultural and allied sector is projected to grow by 3.1 per cent in 2011-12, on top of the 5.1 per cent growth estimated in 2010-11.
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