Economy to be back at 9% growth rate by 2011: S&P

The economy would get back to 9 per cent growth rate by 2011, says an article by the global rating agency Standard & Poor's (S&P), an estimate higher than other agencies.

"India is on course to return to the pre-crisis growth rates of about 9 per cent from 2011," said a guest opinion article recently published by S&P's Ratings Services, titled 'Why India Will Continue To Gain Stature In The Global Economy'.

However, the challenge is not merely achieving a 9 per cent growth rate but also sustaining it, said DK Joshi, principal economist with Crisil, a subsidiary of S&P India.

The economy grew at a growth rate of about 9 per cent till 2008, after which it was hit by the global financial slowdown by September of that year. However, in the second quarter of the current fiscal GDP grew at 7.9 per cent.

According to the article, realising the country's potential will mean accelerating reforms to improve the investment climate, productivity, and domestic demand to offset the impact of weak performances among advanced economies.

Areas that it has suggested for immediate policy action include addressing high debts and deficits, infrastructure improvement, opening the door to more foreign investments, streamlining the tax system, amending the labour laws and reforming the financial sector.