Industry chamber CII has projected the Indian economy to expand by up to 8.5 per cent in the current fiscal from estimated 7.2 per cent in 2009-10, but called for greater reforms, particularly in the financial sector, to push growth to double digits.
"CII estimates GDP growth at 8-8.5 per cent in 2010-11...A recovery in agriculture is likely in the coming years leading to upside in GDP growth; Industry and services to remain strong as capacity expansion takes place to take advantage of the rising demand," Confederation of Indian Industry President Hari S Bhartia said.
Bhartia further said that the industry is estimated to grow by 8.5 to 9 per cent, services by 9.3 to 9.5 per cent and agriculture by 2 to 3.5 per cent this fiscal.
However, if the country is looking at 10 per cent GDP growth, manufacturing sector must register 11-12 per cent growth and services must continue to remain robust.
To achieve this on a sustained basis, the government will have to fast-track financial sector reforms, he said, and added that the CII is all for enhancing FDI in the insurance sector.
A bill to hike FDI in insurance from 26 per cent to 49 per cent is pending in Parliament.
Finance Minister Pranab Mukherjee has also pegged the economic growth at around 8.5 per cent in the current fiscal from estimated 7.2 per cent in 2009-10.
The GDP growth slowed to 6.7 per cent in 2008-09 due to the global financial meltdown.
However, the government's stimulus packages and stepped-up public spending pushed growth to an estimated 7.2 per cent in fiscal 2009-10.
Economic growth could have been higher, but poor performance of the farm sector owing to weak monsoon retarded overall growth.
Farm sector output contracted by 0.2 per cent during 2009-10 on yearly basis.