Economy to grow by 9.2% in 2010-11: CMIE

Economy to grow by 9.2% in 2010-11: CMIE

“We maintain that the Indian economy will grow by 9.2 per cent in 2010-11, as we expect impressive growth in the manufacturing and services sectors as well,” CMIE said in a statement. The Index of Industrial Production (IIP) dropped dramatically to 5.6 per cent in August, after growing by 13.8 per cent in July. It had recorded a growth of 11.2 per cent in the June quarter, but we believe that the growth was much higher than 11.2 per cent, the economic think tank said.

This is because sales revenues of the manufacturing companies rose by 23.8 per cent, while the rate of inflation in manufactured products including petroleum products was 8.2 per cent, implying that sales volumes grew by about 14.4 per cent.

In August, the rate of inflation touched a six-month low of 8.5 per cent. It was calculated as per the new series released on 14 September with 2004-05 as the base year. A moderation in the prices of primary food articles,manufactured food products and paper & paper products helped keeping a check on inflation.

We expect WPI-based inflation to moderate to 7.9 per cent in 2010-11, as compared to our earlier projection of 8.5 per cent based on the old series, it said. CMIE expects that the agricultural production to grow by 7.2 per cent pc in 2010-11.

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