India's GDP likely to grow by 9.2% in FY11: CMIE

India's GDP is expected to grow at 9.2 per cent in FY11 on the back of spurt in economic activities, Centre of Monitoring Indian Economy (CMIE) said in its monthly review here.

The GDP had grown 7.4 per cent in the preceding year.

"We have been maintaining a 9.2 per cent growth projection for FY11 since March 2010. We project the three broad sectors of the economy (industry, services and agriculture) will improve their performance in FY11," CMIE said.

The industrial sector, including construction is projected to grow by 9.4 per cent in FY11, better than the 9.2 per cent growth in FY10. The services sector is projected to expand by 10 per cent, compared to 8.6 per cent last year led by the growth in trade and transport segment.

The biggest turnaround is expected from the agriculture and allied sector, which is projected to grow by 5.7 per cent in FY11. Foodgrain production is projected to rise by 5.2 per cent as compared to an estimated seven per cent decline in FY10.

Oilseed production is expected to recover strongly and projected to grow by 15.4 per cent against the estimated decline of 11.6 per cent in FY10. Sugarcane could grow by 12.9 per cent and cotton by 12.4 per cent, the CMIE report said.

The GDP grew by 8.8 per cent during the quarter ended June 2010. It was the second consecutive quarter of over 8.5 per cent growth. In three out of the four quarters till June 2010, the GDP growth was more than the 8.5 per cent.

The growth in the June 2010 quarter was marginally lower than our projected growth of 9 per cent, CMIE said.