Indian economy to grow by over 8.5%: Anant

Chief statistician T C A Anant today said that the economy is likely to grow a little over the targeted 8.5 per cent this fiscal on the back of robust farm output and industrial production.

"I am comfortable with 8.5 per cent, maybe a little more. I think it is on target," Anant said here.

The Government has projected the economy to grow in the range of 8.5-8.75 per cent this fiscal.

Recently, Finance Minister Pranab Mukherjee had exuded confidence that the economy would surpass the economic growth projections.

"I am optimistic that at the end of this year we will be able to surpass our GDP growth forecast of 8.5-8.75 per cent given in the Economic Survey," Mukherjee had said.

Anant agreed with the Finance Minister's optimism.

"At the moment, I think it is a perfectly good statement to make. The first quarter estimates of 8.8 per cent is comfortably consistent with the target," he said.

The chief statistician said the expectation is that the monsoon would be good.

"So, agriculture production would be above last year's. Also the industry production figures have been sound  and are indicating that the second quarter number could well turn out to be good. So all of this put together, the optimism is well justified," he added.

The Indian economy grew by 7.4 per cent in FY10, while the farm sector registered a growth of 0.2 per cent.

Further, industrial growth accelerated to 13.8 per cent in July from 7.2 per cent in the corresponding month last year, on the back robust capital goods production.

Industrial growth for the first four months of this fiscal stood at 11.4 per cent from 4.7 per cent a year ago.

Following the global financial crisis, the GDP growth had moderated to 6.7 per cent in 2008-09 after recording a growth rate of 9 per cent in the three preceding years.