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Economy to grow by 9% in 2011-12: FM

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Press Trust of India New Delhi
Last Updated : Jan 20 2013 | 1:49 AM IST

India's economy will revert to the pre-crisis growth level of 9% in the next financial year.

"The Indian economy is expected to grow at 9% with outside band of (+/-) 0.25% in 2011-12," Finance Minister Pranab Mukherjee said while unveiling the Budget proposals for 2011-12.

He said the Indian economy has regained the pre-crisis growth momentum, but there is a need for adjustment in the composition in demand and supply side.

"We have to ensure along with private consumption revival in private investment is sustained and matches pre-crisis growth rates at the earliest," Mukherjee said.

Indian economy has already reverted to the high growth path recorded by 8.9% in the first half of the current fiscal.

As per the CSO data released today, in the third quarter (October-December) the country's Gross Domestic Product (GDP) grew at 8.2%.

In the current fiscal, the economy is expected to expand by 8.6%.

Even the pre-Budget Economic Survey tabled in Parliament last week expected the real GDP to grow by 9% (+/-0.25) in 2011-12.

For the current fiscal, the economy is expected to grow at 8.6%, it said.

The Indian economy had grown at a rate above 9% for three consecutive years, starting 2005-06, before the global financial meltdown brought it down to 6.8% in 2008-09.

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First Published: Feb 28 2011 | 11:47 AM IST

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