Economic think-tank NCAER on Friday raised the forecast for the country's economic growth in this fiscal to 8.53 per cent in the backdrop of good corporate performance and expectations of higher farm sector growth.
"The revised forecast places overall real GDP growth at 8.53 per cent as compared to the previous forecast of 8.3 per cent. Higher growth has been largely due to agriculture and industry," NCAER said in its quarterly review.
Expectations of better monsoon and impact of higher capital inflows have led to higher growth estimates for these two sectors, it said.
NCAER's revised estimate comes days after International Monetary Fund raised the GDP forecast to 9 per cent in 2007.
While Reserve Bank of India expects economy to grow at 8.5 per cent, the Economic Advisory Council to the prime minister has pegged the economic growth rate at 9 per cent in 2007-08.
Indian kitemaker Jagmohan Kanojia displays kites in the colours of the national flag and adorned with images of Indian freedom fighters at his workshop in Amritsar
Photograph: Narinder Nanu/AFP/Getty Images
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