India to grow at 9 percent in 2011-12: Rangarajan

 | October 05,2010 06:16 pm IST

The Indian economy is expected to clock a higher rate of growth in fiscal 2011-12 with better agricultural performance, C. Rangarajan, Chairman, Prime Minister's Economic Advisory Council (PMEAC), said here Tuesday.


He said the economy would grow at 8.5 per cent in 2010-11.


"With good monsoon this year, agriculture is expected to record a growth of over 4 per cent and with industrial growth estimated at around 9-10 per cent this year, one can hope of even a better growth rate in year 2011-12", said Rangarajan.


"We expect Indian economy to grow at 9 per cent in 2011-12."


He said due to good monsoon rains this year, the inflation should come down to 6.5 per cent by March next year.

"Last year's factors and forces like drought, which fuelled inflation, have disappeared this year, which will bring it down," Rangarajan added.


Earlier, delivering the keynote address at a seminar here on microfinance and financial inclusion, Rangarajan said that growth of the bank-SHG (Self Help Group) linkage would give a boost to the microfinance sector.


He said the bank-SHG linkage scheme had proved to be an effective way of providing credit to very small borrowers and this needed to be further strengthened.