India’s GDP to grow 8.2% in FY 11: Crisil

Monday, 25 October 2010 03:27 - - {{hitsCtrl.values.hits}}

Mumbai (PTI) Leading rating agency Crisil expects the country's GDP to grow by 8.2 per cent this fiscal and continue with the same momentum for the next decade, courtesy the consumption arising out of India's demographics.

"We expect the Indian GDP (gross domestic product) to grow 8.2 per cent in 2010-11 as there is a lot of demand, plus the rains have also been good this year which will help the agricultural sector grow by 5.5 per cent," Crisil's Managing Director and Chief Executive Roopa Kudva said.

Capital inflows into the country will be higher in the second-half of the fiscal and the Rupee will appreciate up to Rs 43.44 by end-FY 11 from the current Rs 44.60, she said. Because of the inherent demand coming out of a young and working population, the Indian economy will continue to grow in the next decade.

The trillion-dollar domestic economy will treble in the next decade, she added. Speaking on prospects for corporate India, Kudva said, "the top 50 companies we track have a combined turnover of USD 400-billion currently, we expect it to grow to USD one-trillion by 2015.

"A barometer for the growth potential is the ratings of the 5,400-odd companies Crisil rates and the number of upgrades are far higher than the downgrades in the recent past, which was last observed three-and-half years ago, Kudva said.

"We have all the drivers in place. Even our banks are well capitalised to fund the growth. Only chemicals, textiles and real estate sectors will not witness growth at par with the others," she said.