As U.S. struggles, India poised for growth

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India’s economic growth is likely to return to pre-crisis levels in the next fiscal year, driven by strong industrial and agriculture growth.

The Centre for Monitoring Indian Economy expects Asia’s third largest economy’s gross domestic product to grow by 9.2 percent during 2010, up from 6.9 percent in 2009.

“In fiscal 2010/11, real GDP growth will be propelled by a strong performance by the industrial sector and a robust recovery in agricultural and elite sector. Services sector too is expected to do well,” CMIE said in the report.

“A revival in consumer confidence and investment activities will supplement growth in the commodities segment,” the report said.

India’s GDP growth slowed to 6.7 percent during 2009 from 9 percent or more in the previous three years, prompting authorities to unveil a variety of measures designed to boost the economy.

The measures helped as the country’s industrial output grew at its fastest pace in two years during November at 11.7 percent; the economy expanded 7.9 percent during September and inflation jumped to a one-year high of 7.3 percent during December.

CMIE expects the wholesale price index, the main price barometer, to steadily fall to 7.7 percent in the June quarter and further to 3.8 percent during the second quarter of 2011.