Economy set to grow 8.5% in 2010-11: PM

India's economy is expected to grow 8.5 per cent in the current year and 9 per cent in 2011/12, Prime Minister Manmohan Singh said on Friday.

"However, high unemployment in industrialised countries threatens a revival of protectionist sentiment, especially since the use of conventional monetary and fiscal tools to revive the economy has been exhausted," he said in a speech at the plenary session of the G20 summit in Seoul.

India's economy grew 9 per cent in each of the four years prior to the economic crisis but slowed to 6.7 per cent growth in 2008/09.

"Uncertainty about the prospects of inudstrialised countries affects the investment climate and dampens the medium-term growtn prospects of emerging market countries," Singh said.