India's growth estimates may be revised upwards

Asian Development Bank (ADB) today said it was likely to revise upwards its growth and inflation projections for India. ADB has estimated India to grow 8.2 per cent in the current financial year (2010-11) with a point-on-point inflation rate of 5 per cent by the end of March 2011.

“After seeing the high inflation in the first half of 2010-11, we plan to revise upwards the inflation forecast above 5 per cent in our next Economic Outlook slated for September 28,” ADB Chief Economist Jong-Wha Lee said.

Lee said inflation in India was coming primarily from the supply side and the double-digit food inflation figure is impacting the lower middle class as their share of income on food and beverages was high.