India to grow at 9.7% in 2010: IMF

The Indian economy will grow by 9.7% in 2010 and 8.4% in next year, spurred by strong industrial output and overall robust macro-economic performance, the International Monetary Fund (IMF) said. "Growth is projected at 9.7% in 2010 and 8.4% in 2011, led increasingly by domestic demand. Robust corporate profits and favorable external financing will encourage investment," the IMF said in its latest World Economic Outlook report. "India's macroeconomic performance has been vigorous, with industrial production at a two-year high. Leading indicators - the production manufacturing index and measures of business and consumer confidence - continue to point up," the IMF said. "Recent activity (10% growth in real GDP at market prices in Q2) was driven largely by investment and the contribution from net exports is projected to turn negative in 2011 as the strength in investment further boosts imports," the IMF said. The RBI's projection for India is 8.5% for 2010-11, which is in line with other projections. The PM's Economic Advisory Council has also projected 8.5 in 2010-11, and 9% in 2011-12.