Economy to grow 8% in 2010-11: Report

The economy will expand 8 % in 2010-11 after growing between 7 and 7.5 % in the current fiscal year to end-March, a newspaper reported on Saturday, quoting the prime minister's economic adviser C Rangarajan.                                           

"There is reason why I expect 8 % growth in the next fiscal (year). Agriculture would improve with normal monsoon and it would add 0.5-1 % in the GDP growth," the newspaper quoted him as saying.                                           

The economy grew an annual 7.9 % in the quarter through September, its fastest in 18 months, prompting the finance ministry to revise the growth forecast for the current fiscal year to around 8 % from 7.0 %.                                           

The economy expanded 6.7 % in 2008-09 (April-March), slower than the 9 % or more in the previous three years.

Rangarajan also said the economy would return to an annual growth rate of 9 % in the fiscal year to end-March 2012 on the back of an improvement in the world economy and global trade.