'Economy to grow by 8.5% this fiscal, 9% next yr'

Finance Minister Pranab Mukherjee today stuck to his conservative estimate of economic growth at 8.5 per cent this fiscal and said the economy will be on the high expansion path at 9 per cent in 2011-12.

"The latest figure released by CSO and the latest industrial production figures clearly demonstrate it would not be difficult to achieve 9 per cent growth as being projected in the Budget from the 2011-12 and surely this year, our growth would be not less than 8.5 per cent," Mukherjee said here.

The Indian economy grew by 8.8 per cent in the first quarter of this fiscal, the fastest growth in around three years.

The Finance Minister added that people think the 8.5 per cent estimate is conservative, given that India's economy achieved 8.8 per cent in the first quarter.

"Indian economy is back on the path of growth," he added.

Industrial growth accelerated to 13.8 per cent in July, after dipping to just a little over 5 per cent in the previous month.