India's GDP is projected to grow at a brisk pace of 8.8 percent in 2011-12 (FY 12), a leading economic think-tank has said.
The domestic environment is conducive for growth and private final consumption expenditure is projected to grow by a healthy 7.5 percent and gross fixed capital formation by 14.6 percent, the Centre for Monitoring Indian Economy (CMIE) said in its latest monthly review of the country's economy
In FY 11, the performance of India's economy has been robust, it said, adding that the real GDP is estimated to have grown by nine percent during the fiscal.
In FY 12, the agricultural and allied sector is projected to grow by 3.1 percent, on top of the 5.1 percent growth estimated in 2010-11. This will be the third consecutive year of positive growth, it said.
The industrial sector, including construction, is likely to grow by 9.4 percent during 2011-12, as compared to 8.5 percent estimated in 2010-11.
Growth in industrial production will be driven by a rise in consumption demand and investment demand, it added.