Economy likely to grow by 8.3% in FY11: D&B

India is likely to witness an over 8 per cent economic growth in the fiscal 2010-11, driven by good investment and consumption demand, says a report by Dun & Bradstreet (D&B) India, a global business information provider.

"We expect gross domestic production (GDP) growth to be around 8.3 per cent during FY11, backed by strong investment as well as consumption demand," D&B India Economy Outlook 2010-11 said.

The industrial sector is expected to play a crucial role in driving growth in the GDP during the next financial year, the report said.

The Index of Industrial Production growth is expected to remain at a robust 10.3 per cent during FY11.

Focus on infrastructure spending by the government and an increase in investment demand by corporates along with improved consumption would provide an impetus to industrial production, it said.

The report, however, fears that the rising inflation, which is inching towards the double-digit level, may pose a threat to growth prospects.

"Elevated commodity prices do remain a major concern and if unaddressed could pose a threat to the economic growth prospects," D&B India Economic Analysis Head Yashika Singh said.

Headline inflation for the month of February stood at 9.89 per cent against 8.56 per cent in January, driven largely by high food prices.