Indian economy to grow at 8.2 per cent in 2011-12

The Indian economy is expected to grow at 8.2 per cent in the current financial year (2011-12), lower than the rate of growth recorded in the previous financial year.

The projected 8.2 per cent growth should, however, be treated as reasonably high, considering the current global situation, which is unlikely to show much improvement over the near term, prime minister's economic advisor C Rangarajan said while releasing the 'Economic Outlook 2011-12' in New Delhi today.

While the investment climate in the country is reasonably good and the ratio of investments to national income or GDP is reasonably high, a higher rate of growth, say about 9 per cent, would require increased investments in fixed assets, he said.

While the investment rate is projected at 36.4 per cent of gross national product (GDP) of the country in 2010-11 and 36.7 per cent in 2011-12, increased fixed investments would be necessary to keep the economy growing at 9.0 per cent, he said.

Domestic savings rate as ratio of GDP has been projected at 33.8 per cent for 2010-11 and 34.0 per cent for 2011-12.

With the 2011 monsoon expected to be in the range of 90 to 96 per cent of the long-term average, agricultural production in the country is expected to keep the current growth momentum.