RTTNews - India's economy will grow 5.9% in the current fiscal and by 7.2% in the next fiscal, said the Organisation for Economic Co-operation and Development (OECD) in its half-yearly economic out look.
This is an increase of 160 basis points in current fiscal and 140 basis points for the next fiscal. The Paris-based organisation attributes estimated higher investment inflows in 2009-10 for the rise in growth.
Jorgen Elmeskov, OECD's chief economist, raised issues on India's rising fiscal deficit due to higher government- spending, and suggested that further easing in policy should be achieved through low-interest rates. He added that government employee wage rise and farmers debt-waiver policy affected the fiscal situation.
A report of Business Standard says, Citigroup also has projected 6.8% growth in India's economy in 2009-10, an upward revision of its earlier estimate of 5.5%. However, it has raised concerns about the delaying monsoon that could impact the economy adversely.
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