International rating agency Fitch Ratings has pegged India's economic growth at 8 per cent for this fiscal, up from an estimated 7.2 per cent in the 2009-10 period.
The growth was primarily fuelled by the industry and services sectors, Fitch said. The projection was the same as made by the RBI, but lower than the government's prediction of 8.5 per cent.
"Emerging markets like China, India and Brazil will drive world growth. India's GDP growth is expected to be around 8 per cent this year," Fitch Ratings Group Managing Director (Europe, Middle East, Africa and Asia-Pacific) Richard Hunter said.
Stating that "industries and services are primarily thecontributing factors" to India's growth, he said, "The positive monsoon forecast, increasing consumption in the large domestic market and agricultural growth are some of the
Hunter maintained that there was a general recovery in growth levels. Indian economic growth had slowed down to 6.7 per cent in 2008-09, a sharp dip from 9 per cent in the previous three years, when the global financial meltdown hit.
After the government provided stimulus to the economy by cutting taxes and increasing public expenditure, the economy expanded by about 7.2 per cent during 2009-10.
An economic survey conducted earlier this year had stated that the economy will grow by 8.25 per cent to 8.75 per cent this fiscal. The Finance Ministry agreed with the survey's projections and pegged its expectations at 8.5 per cent.
But the Reserve Bank, taking a more conservative stand, said that the economy will grow by only 8 per cent this fiscal.
Hunter said that China's GDP growth was expected to be around 9.5 per cent this year, while Brazil would clock around 5.5 per cent.
"China's GDP growth is more (than India's) because of strong policy measures adopted by that government and the private sector's strong credit growth," Hunter added. In the emerging markets, consumer spending will grow in line with the GDP from 2011.