IMF projects 8.2 per cent growth for India in 2011
18 Jun 2011
The International Monetary Fund yesterday projected the Indian economy would expand by 8.2 per cent in 2011, the same rate forecast in April.
However, it said, this growth would be much lower than 10.4 per cent growth the economy registered in 2010.
The projection comes in the backdrop of an uncomfortably high inflation rate in the country that could derail the India growth story.
The rate of inflation in the second fastest growing economy after China, crossed 9 per cent mark in May.
The IMF projects a much slower pace for 7.8 per cent for India in 2012, according to the World Economic Outlook report released on Friday.
According to the multilateral lender's forecast in April, it expected the Indian economy to expand by 8.2 per cent and 7.8 per cent in 2011 and 2012, respectively.
Even as it retained its estimates, the Indian government remains concerned that GDP expansion during April 2011- March 2012 may moderate from its February projection of around 9 per cent growth.
Yesterday, the government said that tight monetary policy regime by the RBI to tackle inflationary pressures, would likely hurt economic growth.
