Panel predicts 7% growth for India

Counting on the general elections to spur the sagging economy, the prime minister's economic advisory panel has said it expects the country to grow at 6.5 to over 7 per cent in 2009-10.

"I expect the economy to grow by 6.5 per cent to 7 plus per cent in the current fiscal year," the Prime Minister's Economic Advisory Council chairman, Suresh Tendulkar, told PTI.

Earlier the council's outlook was 7-7.5 per cent for the year.

Even the revised forecast is yet quite optimistic compared to other agencies.

"The election expenditure will act as a big stimulus by resulting in additional purchasing power," he said, adding that the lower interest rate regime has already kicked in, which will help growth.

A equally optimistic projection has come from the chief economic adviser to the finance ministry Arvind Virmani, who expects the country's economy to grow 6.5-7.5 per cent.

Others who gave high forecasts include economic think-tank National Council of Applied Economic Research (6.5 per cent) and credit rating agency ICRA (6.5-7.5 per cent).