CMIE pegs GDP growth at 8.8%

India’s GDP is projected to grow at a brisk pace of 8.8 per cent in 2011-12 (fiscal year 2012), Centre for Monitoring Indian Economy (CMIE) has said.

The domestic environment is conducive for growth and private final consumption expenditure is projected to grow by a healthy 7.5 per cent and gross fixed capital formation by 14.6 per cent, it said in its latest monthly review of country’s economy.In financial year 2011, the performance of India’s economy has been robust, it said, adding that the real GDP is estimated to have grown by nine per cent during the fiscal.

“This has been powered by a rebound in agricultural sector following the drought in 2009-10, and a sharp pick-up in private consumption and gross fixed capital formation,” CMIE said.

The industrial sector, including construction, is likely to grow by 9.4 per cent during 2011-12, as compared to 8.5 per cent estimated in 2010-11. Growth in industrial production will be driven by a rise in consumption demand and investment demand, it added.

“Consumption demand, in turn will be driven by a rise in corporate wages, fresh employment generation and relatively lower inflation,” the economic think-tank said. Investment demand is expected to remain buoyant, as more and more projects move into the implementation stage, it said.

CMIE said activities in the construction sector are expected to be pushed-up as projects worth Rs 8-lakh-crore are scheduled to be commissioned in finan cial year 2012, as compared to Rs 3.5-lakh-crore in fina ncial year 2011.

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