India could grow 8.5-9.5 pct in medium term: UN

A UN report says Indian economy could grow 8.5-9.5 pc over the medium term but price pressures may persist due to high global oil prices.

India's economy could grow 8.5-9.5 per cent over the medium term but price pressures may persist due to high global oil and food prices, a United Nations panel said in a report released on Thursday.

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"The sustained expansion of the Indian economy would see growth at between 8.5-9.5 per cent over the medium term following growth of 8.7 per cent in 2007," the UN Economic and Social Commission for Asia and the Pacific (UNESCAP) said.

"UNESCAP expects inflation at 5 per cent for 2008."

India's widely watched wholesale price inflation inched close to 6.0 per cent in early March, above the central bank's comfort level of 5.0 per cent.