Economy to grow 8.5 per cent in FY11: PM

Prime Minister Manmohan Singh said today that the Indian economy would grow at 8.5 per cent during the next fiscal, even as the government would do everything possible to ensure a mid-term 10 per cent annual expansion target.

"Despite adverse global situation, the Indian economy grew by 6.7 per cent during fiscal 2008-09, which will accelerate to 7.2 percent this fiscal that ends in a few days time," the prime minister told a conference organised by the Planning Commission.

He added that the government expected an 8.5 per cent growth in 2010-11. He said he expected a 9 per cent growth in 2011-12. He added that there was a need to do even better and a 10 per cent per annum target was what should be worked towards.

The prime minister who is also the chairman of Planning Commission said that though double digit growth seemed somewhat ambitious, it had been achieved by some emerging economies.

He told the conference that for India to do this it would need continued improvements in policy regimes and procedures.

Finance minister Pranab Mukherjee, agriculture minister Sharad Pawar, road transport and highways minister Kamal Nath, power minister Sushil Kumar Shinde and planning commission deputy chairman also attended the conference.