Economy likely to grow by 9 %, next fiscal: Study

 
“I expect industrial production to be high next year. With normal monsoon, GDP growth could reach 9 per cent in 2010-11,” Ernst & Young Financial Services Partner & National Director Ashvin Parekh told PTI.

He further said India could grow between 7.5 and 8 per cent in the current fiscal as export numbers are expected to rise in the coming months and industrial growth could be around 9-10 per cent. Impacted by the global financial crisis, the growth rate slipped to 6.7 per cent in the last fiscal from 9 per cent in the three preceding years.

In the first quarter of the current fiscal, the economy expanded by 6.1 per cent, but the momentum in the second quarter (July-September) only with GDP increasing by 7.9 per cent, much more than what was estimated by any analysts or think-tanks. Rising fiscal deficit and food inflation, Parekh said, continue to pose big challenge before the economic managers.

Going forward, Parekh expects food prices to cool down from the present level as the government may look into supply management issues.