With sufficient measures to boost public investment in construction, India's Planning Commission is optimistic on 7.4% economic growth in 2009-10, despite international agencies lowering their growth forecast, reported the PTI.
A Planning Commission report to Prime Minister Manmohan Singh recommended a major effort to raise public investment in construction that could boost growth rate. It suggested that a Rs.50,000 crore absorption could raise the GDP by 2.2%. It further said even if half of the amount is absorbed the 2009-10 growth rate would be 7.4%.
The report further added that Indian Economy is likely to grow 6.3% in 2009-10 backed by stimulus packages and National Rural Employment Guarantee Scheme.
The World Bank projected Indian Economy to grow 4% in 2009-10, while the Organisation for Economic Cooperation and Development forecast 4.3% and IMF estimates 5.1%.
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