8.6 percent growth for Indian economy in 2010-11
New Delhi: A high farm output on top of abundant rainfall has helped the Indian economy grow by an estimated 8.6 per cent in 2010-11, against 8 per cent a year ago, but high inflation remains a dampener.According to Advance Estimates released by the government, the Indian economy would grow by 8.6 per cent in this financial year, despite fragile global recovery since financial meltdown of 2008.
"All along I was maintaining, it should be around 8.5 per cent plus. 8.6 per cent is accepted," Finance Minister Pranab Mukherjee said adding, "Now the other issue is inflation, trade balance… these are to be addressed".Agriculture and allied activities are expected to grow at 5.4 per cent in 2010-11 compared to just 0.4 per cent in the previous financial year.
The 8.6 per cent GDP growth prospects however could not cheer markets. The BSE benchmark sensex closed almost flat at 18037.19 on concerns of inflation and rising interest rates.