Mumbai:
The Indian economy is expected to grow 8.9 per cent in the year to March 2008,
compared with 9.2 per cent a year earlier, the National Council for Applied Economic
Research (NCAER) said. NCAER
revised upwards its growth projection from 8.5 per cent it forecast in August
as it expects higher growth in services and farm sectors. The
growth projection is also higher than the 8.5 per cent forecast by the Reserve
Bank of India in its review of monetary policy. The
industry is expected to grow at 9 per cent during 2007-08, compared to 10 per
cent a year earlier, NCAER said in its report. Services sector is expected to
grow by 10.6 per cent, while farm output will be higher by 3.8 per cent, it said. Inflation
will average 4.7 per cent during the fiscal, NCAER said, adding interest rates
will remain stable in the coming months. The
government''s fiscal deficit is expected to be on target at 3.3 per cent of gross
domestic product, it added.
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