Indian economy to return to pre-crisis levels in fiscal 2010-11: CMIE

According to the Centre for Monitoring Indian Economy (CMIE), India's economic growth was likely to return to pre-crisis levels in the next fiscal year, driven by strong industrial and agriculture growth.

The CMIE projects the third largest Asian economy's GDP growth to accelerate to 9.2 per cent in 2010-11 as against 6.9 per cent in 2009-10.

In its report the CMIE said in fiscal 2010-11, real GDP growth would be fuelled by strong performance by the industrial sector and a robust recovery in the agricultural and elite sector with services sector also expected to do well.

The report says a revival in consumer confidence and investment activities would supplement growth in the market segment. Indian economy slowed to 6.7 per cent growth in 2008-09 from 9 per cent or more in the previous three years, as the global financial turmoil hit demand, prompting the government to unveil economic packages aimed at boosting the flagging economy.

The measures spurred India's industrial output to its fastest pace of growth in two years in November at 11.7 per cent.

The economy expanded 7.9 per cent in the September quarter even as inflation surged to a one-year high as of December, at 7.3 per cent. According to CMIE projections the wholesale price index, the main price barometer, would fall to 7.7 percent in the June quarter falling further to 3.8 percent March quarter of 2011.