Mumbai: The Centre for Monitoring Indian Economy (CMIE) on Monday projected India’s domestic growth at 8.8 per cent in the fiscal year2011-12. 

A leading economic think-tank CMIE in its latest monthly review said that India’s market will grow by a healthy 7.5 per cent and gross fixed capital formation by 14.6 per cent.

In FY 11, the performance of India's economy has been robust, it said, adding real GDP is estimated to have grown by nine per cent during the fiscal.

"This has been powered by a rebound in the agricultural sector following the drought in 2009-10, and a sharp pick-up in private consumption and gross fixed capital formation," CMIE said.

In FY 12, the agricultural and allied sector is projected to grow by 3.1 per cent, on top of the 5.1 per cent growth estimated in 2010-11. This will be the third consecutive year of positive growth, it said.

The industrial sector, including construction, is projected to grow by 9.4 per cent during 2011-12, as compared to 8.5 per cent estimated in 2010-11.

Growth in industrial production will be driven by a rise in consumption demand and investment demand, it said.

"Consumption demand, in turn will be driven by a rise in corporate wages, fresh employment generation and relatively lower inflation," the economic think-tank said.

Agencies