PMEAC says India will grow at least 6.5 per cent in FY10

NEW DELHI: Counting on the general elections to spur the sagging economy, the Prime Minister's economic advisory panel has said it expects the country to grow at 6.5 to over 7 per cent in 2009-10.

"I expect the economy to grow by 6.5 per cent to 7 plus per cent in the current fiscal year," the Prime Minister's Economic Advisory Council (PMEAC) Chairman, Suresh Tendulkar, told reporters.

Earlier the Council's outlook was 7-7.5 per cent for the year. Even the revised forecast is yet quite optimistic compared to other agencies.

"The election expenditure will act as a big stimulus by resulting in additional purchasing power," he said, adding that the lower interest rate regime has already kicked in, which will help growth.

A equally optimistic projection has come from the Chief Economic Adviser to the Finance Ministry, Arvind Virmani, who expects the country's economy to grow 6.5-7.5 per cent.

Others who gave high forecasts include economic think-tank National Council of Applied Economic Research (6.5 per cent) and credit rating agency ICRA (6.5-7.5 per cent).