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Indian economy to grow at 8pct in 2011

Amid concerns of a global slowdown, Chief Economic Advisor Mr Kaushik Basu said that the Indian economy is expected to witness a growth rate between 7.5% and 8% in 2011 fiscal.

He said that "There is slowdown across the world. Our growth rate would be 7.5% to 8% this fiscal. India is one of the slowest slowdown."

In the first quarter of the current fiscal, the Indian economy posted a growth rate of 7.7%.

He said that "We do expect some slowdown in exports in the second half of this year. Foreign direct investment for this year looks very, very good."

Mr Basu said that partly attributed rising inflation to high wages. In India, the biggest inflation in the last one and a half years is taking place in the labour intensive sector. He added that "This is a sign of rising cost of labour and also we have data now that wages are inflating faster than good and services."