Plan panel expects GDP at 8% for 2010-11

The Indian economy will be back on growth path with the GDP expected around 8 per cent in 2010-11, the Planning Commission said on Tuesday.

The panel, in its presentation 'Current Economic Outlook' before Prime Minister Manmohan Singh during the full panel meet, also projected the gross domestic product in 2011-12 to reach 9 per cent.

"We project growth of 8 per cent in 2010-11 and nine per cent in 2011-12. This is optimistic but not impossible. If we have normal monsoon in 2010-11, we can expect a strong rebound in agriculture next year," the plan panel paper said.

The panel also said the decline in exports would slow down after 2010 when the developed economies would return to positive growth.

"Exports would also recover as industrialized countries return to positive growth of one per cent in 2010 with further acceleration in 2011", it said.

India's exports are on a down slide since October 2008, because of the global slump in demand. In 2008-09, the country's overseas shipment grew by meagre 3.4 per cent to about $168 billion compared to the same period last year.

The GDP data released on Monday showed signs of recovery as Indian economy grew by 6.1 per cent during the first quarter ending June 30 this fiscal against 7.8 per cent in the corresponding period in 2008-09.