India’s GDP is projected to continue to grow at a brisk pace of 8.8 per cent in 2011—12 (FY 12), a leading economic think tank 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, the Centre for Monitoring Indian Economy (CMIE) said in its latest monthly review of the country’s economy.
In FY 11, the performance of India’s economy has been robust, it said, adding real GDP is estimated to have grown by nine per cent during the fiscal.
“This has been powered by a rebound in the agricultural sector following the drought in 2009-10, and a sharp pick up in private consumption and gross fixed capital formation,” CMIE said.
In FY 12, the agricultural and allied sector is projected to grow by 3.1 per cent, on top of the 5.1 per cent growth estimated in 2010—11. This will be the third consecutive year of positive growth, it said.
The industrial sector, including construction, is projected 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 said.
“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.