PM EAC chairman expects 7.1% growth in FY 2010

20 Feb 2009 | 17:24

Prime Minister's Economic Advisory Council (EAC) Chairman Suresh Tendulkar today, 20 February 2009, said India's economy is expected to grow at 7.1% in the fiscal year ending March 2010 (FY 2010). That will be much better growth than that forecast by private economists. HSCB, for instance, expects 6.2% growth in India's GDP in FY 2010. Citibank expects India's FY 2010 GDP growth at 5% to 5.5%.

The global financial sector crisis and recession in key global economies have pushed economic growth in India down to a six-year low. The Central Statistical Organisation (CSO) has pegged India's projected GDP growth for the year ending March 2009 at 7.1%, the slowest in six years and below the previous year's 9% rise.

Tendulkar said growth may be weak in the first half of FY 2010 but it is likely to pick up in the second half of the year.

He said the asset quality in the Indian banking system may deteriorate owing to the global slowdown. Tendulkar expects interest rates to fall further.

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