Indian economy to grow by 8.8 % in 2010-11: IMF

• The International Monetary Fund (IMF) expects the Indian economy to grow by 8.8 per cent during the current financial year, up from 7.4 per cent a year ago, mainly driven by robust growth in farm sector and pick up in consumption.
• The multilateral lending agency, however, expressed concern over rising prices and underlined the need for controlling inflationary expectations by more monetary actions by the Reserve Bank.
• The economy expanded by 8.9 per cent during the first half of the current fiscal and, according to the government estimates, may revert to the pre-global crisis level of 9 per cent growth.
• However, the IMF has projected moderation in growth form the current high levels to 8.1 per cent next fiscal.
  

Rising prices a concern

Listing rising prices as a major area of concern, the IMF said the RBI could take more monetary steps to contain inflationary expectations.
The inflation, according to IMF, could moderate to 6.5 per cent by March end.
Besides inflation, high capital inflows and uncertainty in the global economy are the other areas of concern that could impair growth.