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Economy to grow by 9.4% despite gloomy expectations: CMIE

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Press Trust of India Mumbai
Last Updated : Jan 20 2013 | 9:59 PM IST

The Indian economy would continue to clock a robust over nine per cent growth in FY09, the Centre for Monitoring Indian Economy (CMIE) said in its monthly report here today.     

"We had predicted a growth of 9.1 per cent in our first forecast in February 2008, which was revised up to 9.5 per cent in June 2008. We now believe that the economy would grow by 9.4 per cent in FY09," CMIE said.     

This marginal change is because of a downward revision in its estimate of the growth of the industrial sector, it said.     

CMIE had predicted a growth of 11.4 per cent in industry. However, following a slowdown in the output of a few industries, "We now believe that the industrial sector would grow by 11.1 per cent and not 11.4 per cent as predicted earlier," the report said     

Prominent industries that have warranted a decline were cement, sugar, glassware and milk powder, CMIE said.     

In fact, two official documents released earlier also indicated that the Indian economy was headed for a slowdown in FY09.     

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The Reserve Bank of India (RBI) had predicted that the real GDP would grow by 8-8.5 per cent in FY09. But, the RBI Governor, brought this down to about 8 per cent.     

The Economic Advisory Council of the Prime Minister (EAC), on the other hand, projects that the economy would grow by 7.7 per cent.

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First Published: Aug 18 2008 | 7:20 PM IST

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