Paragraph - II
Prerequisite: Words Must Know
The IMF has revised upwards the global growth projections, which are placed now at 4.4 per cent in 2011. The Indian economy is estimated to grow by 8.4 per cent in 2011 following a growth of 9.7 per cent in 2010. Under the baseline scenario in which contagion from the financial turmoil in the Euro area is contained, emerging market capital inflows are expected to remain strong and financial conditions robust. Key risk to emerging markets as per the update relate to overheating, a rapid rise of inflationary pressures, and the possibility of a hard landing.
The released estimates on 31 January 2011, the CSO revised growth in real GDP for 2009 - 10 from a level of 7.4 per cent to 8.0 per cent. growth in real GDP for 2008-09 also stands revised to 6.8 per cent. Compositionally, there are significant changes in the GDP as per the Quick Estimates with growth in agriculture at 0.4 per cent; growth in industry of 8.0 per cent as against 9.3 per cent in the Revised Estimates and a sharper rise in growth in services at 10.1 per cent as against the 8.5 per cent indicated in the Revised Estimates. Growth in GDP at factor cost current prices was placed at 16.1 per cent in the Quick Estimates as against a level of 12.2 per cent suggested by the Revised Estimates.
(Source: Economic Survey 2010-11)
