'India to record economic growth rate of 7.3-7.8%'

Playing a major role in dispelling the financial gloom in the Asia-Pacific region, India will record an economic growth rate of 7.3-7.8 per cent in 2008, global rating agency Standard and Poor's (S&P) said today.

"Factors such as intraregional trade, supportive policymaking, and still-robust forecasts for China and India will help the region navigate the global storm," said the S&P 'Asia Pacific Market Outlook' report.

It said growth rate is likely to be lower at 6.5-7.0 per cent in 2009, compared to 7.3-7.8 per cent this year.

However, the official position is that the economy might see a rebound in growth during 2009-10.

The S&P report said ongoing market dislocation will significantly impact Asia-Pacific in 2009.

The report further projected that the consumer prices-based inflation would hover between 7.2 and 7.6 per cent for the year 2008.

On Monday, the Finance Ministry had said inflation will soften due to meltdown in global commodity prices.

According to S&P, inflation will fall anywhere between 5.0 and 5.5 per cent in 2009.

Further, the report highlighted that India and China, the region's main growth drivers will record highest growth in the region and help the APAC economy to grow.

"That regional growth drivers such as strong domestic demand in China and India and the supportive monetary policy stances of the regions governments will enable most economies to experience positive, albeit slowing, growth in 2009," said the report.