Indian economy is likely to grow 8% in the current fiscal, reported the Economic Times quoting the country's chief statistician, Pronab Sen. The finance ministry projected a growth of 6% while RBI put it at 5.7% this year. IMF estimated it pessimistically below 5%.

Sen reportedly said that many estimates have not considered factors like new investments in pipeline, export orders that show revival signals, good harvest that would encourage an already robust rural demand and the extra output from new oil and gas exploration fields such as KG basin in Andhra Pradesh.

He further said that even though some of the projects might be put on hold, the pipeline of new projects would remain robust. He estimates Indian economic growth close to 6.7% for the year ended March 31, 2009 following an average growth of 8.5% for five consecutive years.

The Purchasing Manager's Index for April had also shown an expansion in new export orders for the first time since last September. ABN AMRO purchasing manager's index for April, released on Monday, showed India and China as two economies that expanded after months of contraction while the output index for six core sectors for March released last week showed a growth of 2.9%, the highest in the last six months.

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