Economy to grow by 9% in 2011-12: Prime minister's council

The Prime Minister's Economic Advisory Council (PMEAC) expects the economic growth rate to bounce back to the pre-crisis level of 9% during 2011-12 on account of strong performance indicators of the industry and service sectors.
    
The economy had been growing by over 9% before the global financial meltdown pulled down the growth rate to 6.8% during 2008-09.
    
However, following the stimulus provided by the government to the industry, the growth rate picked up to 8% in 2009-10 and the current fiscal is expected to end with 8.6% economic expansion.
    
"The council continues to be of the view that it is possible to achieve growth of 9% in 2011-12, while slightly refashioning the GDP components", said the 'Review of the Economy 2010-11' released by PMEAC chairman C Rangarajan.
    
The rebound in the country's GDP will be supported by healthy farm sector growth, along with robust performance of industry and services, the Review said.
    
"The farm sector is ... expected to grow by 3% (against 5.4% in 2010-11), the industrial sector by 9.2% (8.1%) and the services sector by 10.3% (9.6%)", it added.

Indian economy grew by 9.5% in 2005-06, 9.6% in 2006-07 and 9.3% in 2007-08.