CMIE ups GDP growth to 5.9% for FY10

Economic think-tank CMIE has upped the economic growth forecast for India this fiscal to 5.9 per cent from its earlier projection of 5.8 per cent.

The recovery would come on the back of a 6.4 per cent expected growth in the last quarter of FY 10, Centre for Monitoring Indian Economy said in its latest report on the state of Indian economy.

But poor monsoon and insufficient and untimely import to replenish the supply could have an impact on inflation, it said.

CMIE, however, forecast that the GDP growth would fall to 5.9 per cent in the current quarter (July-September) and that the economy will grow only by 4.6 per cent in Q3 FY 10.

"Fiscal 2009-10 is, therefore, likely to end with a growth of 5.9 per cent," CMIE said.