Fitch forecasts 8 pc GDP growth for India

CHENNAI: International rating agency Fitch Ratings has forecast an eight per cent growth in India's GDP in 2010-11 with the industries and services being the primary drivers.

'Emerging markets like China, India and Brazil would drive the world growth. And in specific, India's GDP growth is expected to be around eight per cent this year', Fitch Ratings Ltd Group Managing Director (Europe, Middle East, Africa and Asia-Pacific) Richard Hunter told reporters here today.

Stating that a combination of various sectors would lead to this growth, he said 'primarily the growth in industries and services are the contributing factors'.

'The positive monsoon forecast, increasing consumption in the large domestic market and agriculture growth are some of the areas', he said, adding 'there is a general recovery in growth levels'.

He said China's GDP growth was expected to be around 9.5 per cent this year while Brazil would clock around 5.5 per cent. 'China's GDP growth is more (than India) because of the government's strong policy measures and private sector's strong credit growth', Hunter added.

He said in the emerging markets consumer spending can grow in line with GDP from 2011 onwards.