Indian economy likely to expand 8.1 pc in FY 11, says NCAER

MUMBAI: Indian economy is expected to grow by 8.1 per cent in the current fiscal on the back of a turn-around in agriculture production and an anticipated good showing by the industry and service sectors, a leading economic think-tank said.

At the same time, the think-tank pegs the inflation at around 6.6 per cent in FY 11, which may start receding from the second-half of this year.

"We have projected an 8.1 per cent GDP growth. And the one big change is in agriculture production which is likely to see a positive growth this year," the National Council of Applied Economic Research (NCAER) Senior Research Counsellor, Shashanka Bhide, told reporters here today.

The NCAER's projection for FY 10 (for agriculture) was actually a negative growth of 1.5 per cent, Bhide said, adding "for this year, we are projecting (agriculture production) growth at around four per cent. And that will be a big contribution to the change in overall growth."

"I think the big contribution will be from the agriculture," he said.