The Prime Minister’s Economic Advisory Council (PMEAC) expects the economic growth rate to bounce back to the pre-crisis level of 9 per cent during 2011-12 on account of strong performance indicators of the industry and service sectors.
The economy had been growing by over nine per cent before the global financial meltdown pulled down the growth rate to 6.8 per cent during 2008-09.
However, following the stimulus provided by the government to the industry, the growth rate picked up to 8 per cent in 2009-10 and the current fiscal is expected to end with 8.6 per cent economic expansion.
“The Council continues to be of the view that it is possible to achieve growth of 9 per cent in 2011-12, while slightly refashioning the GDP components”, said the ‘Review of the Economy 2010-11’ released by PMEAC chairman C Rangarajan.
The rebound in the country’s GDP will be supported by healthy farm sector growth, along with robust performance of industry and services, the Review said.
“The farm sector is ... expected to grow by 3 per cent (against 5.4 per cent in 2010-11), the industrial sector by 9.2 per cent (8.1 per cent) and the services sector by 10.3 per cent (9.6 per cent)”, it added.
Indian economy grew by 9.5 per cent in 2005-06, 9.6 per cent in 2006-07 and 9.3 per cent in 2007-08.
