India to grow at 8.75 per cent in 2010: IMF

Lalit K Jha
Washington, Apr 21 (PTI) India is expected to grow by
8.75 per cent in 2010 and 8.5 per cent in 2011, driven by a
strong domestic demand, International Monetary Fund (IMF) said
in its 2010 World Economic Outlook released here Wednesday.
It said India's projected growth will be supported by a
resurgence in demand from the working class on the back of an
improvement in business confidence that will result in more
investments.
"Domestic demand will strengthen as the labour market
improves, and investment is expected to be boosted by strong
profitability, rising business confidence and favourable
financing conditions," it said.
However, in terms of growth, China will still be ahead of
India, it said.
"In China, GDP growth exceeded the government's eight per
cent target in 2009 and is expected to be close to 10 per cent
in both 2010 and 2011," the report released on the sidelines
of the Spring meeting of the IMF said.
"What has been so far mainly a publicly driven growth
path, built on infrastructure investment, is expected to turn
toward stronger private consumption and investment," the 2010
World Economic Outlook report said about China.
The World Economic Outlook said the strength in final
domestic demand in India, and especially China, is expected to
have positive spillovers for other Asian economies,
particularly exporters of commodities and capital goods.
Asia's GDP is projected to grow by seven per cent in both
2010 and 2011.
In Korea, economic activity is expected to expand by 4.5
per cent in 2010 and five per cent in 2011, strongly
accelerating from 0.25 per cent in 2009.
"This reflects not just strong export growth — with
capital exports to China an important element — but also a
continued boost from the inventory cycle and a boost in
business investment in response to high capacity utilisation
and strong business confidence," it said.
All these factors should help offset the impact of the
expected withdrawal of fiscal stimulus in 2010, it added. MORE
PTI LKJ
MRD



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