Indian economy is likely to grow by an impressive 9.2% in the financial year 2010-11, a leading economic think-tank said today.
"We believe that the (Indian) economy will grow by an impressive 9.2% in fiscal 2010-11," the Centre for Monitoring Indian Economy (CMIE) has said in its latest review.
So far, real GDP has expanded by 8.9% in the first-half of FY11. In the quarter ended March 2010, real GDP grew by a 8.6% and in the subsequent quarters,improved further to 8.9% in each quarter, CMIE said.
"The economy is expected to perform even better in the second-half of 2010-11. We expect real GDP to grow by 9.7% during this period," it said.
In the quarter ended December 2010, growth is estimated at 9.6% with the major contributors being agriculture and the trade-transport-hotels-communication segment of the services sector, CMIE said.
The banking and insurance sectors are estimated to have done well on the back of the surge in credit growth, while the services sector is estimated to have grown by 10.8% during the quarter ended December 2010, it said.
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It had grown by 9.3% in the first quarter and 9.8% in the second quarter, it added.
Reflecting a sharp growth in crop production during the 2010 kharif season, agriculture and allied activities sector is estimated to have expanded by 7.9% in the quarter ended December 2010, as against an 1.8% decline recorded in the year-ago period.
The Index of Industrial Production (IIP) expanded 11.7% in October 2010 but dipped to 2.7% in November.
"We believe this is an aberration," CMIE said.
The think-tank estimated that the industrial sector (including construction) grew by 8.3% during the quarter ended December 2010.