India will grow by 9.50 percent: IMF

Washington, Jul 8: International Monetary Fund (IMF) projected that India will grow by 9.50 percent in 2010.

The rich corporate profits and favourable financing conditions in fuel investment will help India to grow and then settle to 8.50 per cent in 2011.

The IMF also reported that large domestic demand bases in India, China, and Indonesia, which contribute substantially to Asia"s growth, could also provide the region a cushion in the event of external demand shocks.

According to the IMF"s World Economic Outlook of Jul 2010, despite renewed tension in global financial markets, world growth is projected at about 4.50 percent in 2010 and 4.25 percent in 2011.

IMF also suggested that policy efforts in advanced economies should focus on credible fiscal consolidation, notably measures that enhance medium run growth prospects such as reforms to entitlement and tax systems.

IMF has revised gross domestic product (GDP) growth forecasts for Asia as 7.50 percent for the year 2010.

IMF also estimated that China will grow by 10.50 percent in 2010, before slowing to about 9.50 percent in 2011.

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