The Organisation for Economic Cooperation and Development has projected the Indian economy to expand 8.5 per cent in 2011-12, much lower than the growth of 9.6 per cent witnessed in 2010-11 financial year.
Recently, Finance Minister Pranab Mukherjee had said the Indian economy is expected to grow 8 per cent in 2011-12, which is lower than budgetary estimate of 9 per cent growth.
Reserve Bank of India has pegged gross domestic product growth at 8 per cent, citing high oil prices among other things as the reason for this moderation.
OECD said in 2012-13, the economy is projected to expand 8.6 per cent.
OECD, a grouping of 34 developed and developing nations, noted that India's growth slowed to a more sustainable pace towards the end of 2010, after strong post-crisis rebound driven by a surge in private investment.
"Going forward, growth will pick up somewhat, underpinned by buoyant corporate sentiment and demand for infrastructure spending," the think-tank said.
Pointing out that inflationary pressures have become more generalised due to rising non-food prices, OECD said that liberalisation of FDI in retail sector would help in easing pressures of food inflation.
". . . liberalisation of
Improve regulations for 9% growth'
Kolkata poll diary: Voters brave sweltering heat
Reaching deficit target challenging for India: IMF
Winds of change may not sway North Bengal
Lifting the veil on high priests of globalization