December 7, 2010 1:18 PM

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Indian economy likely to cross 9% GDP

The Indian economy may cross the 9 per cent growth mark this year itself. This was indicated in the Mid-Year Analysis, tabled in the Lok Sabha today. It says that the very rapid 8.9 per cent growth in GDP in the first half of the current fiscal has raised possibilities of the faster recovery to the levels before the global meltdown. It says that the Indian economy has continued to recover robustly in 2010-11 recording one of the fastest growth rates in the world and climbing back to near pre-crisis levels. In comparison with the growth rate of 7.5 per cent in the first half of the last fiscal, 8.9 per cent growth was registered in the same period in the current fiscal. It said that the growth picked up in all three sectors of industry, agriculture and services. The Analysis said this predicts well for a stronger than an estimated economic prospect. It says faster growth is expected to continue in the last two quarters of the current financial year. The Analysis further points out that because of sharp recovery of agriculture from last year's drought and a sharp rise in the crop production, the inflation has started to fall and is expected to decline. It said that these factors will boost demand in rural and urban areas and improve investor confidence.

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