(RTTNews) - India’s economy is likely to achieve a growth of 8% in fiscal 2011 from an estimated growth of 6.3% in the current fiscal, reported the media quoting Planning Commission. The Planning Commission also forecast that the Indian economy will register a growth rate of 9% in 2011-12 and 10% in 2014-15.

The Planning Commission made these assumptions while estimating government finances. It said that the global slowdown has pushed India’s growth to 6.7% in fiscal 2009 from about 9% in the year ago. The economy expanded 6.1% in the first quarter of this fiscal and is likely to drop in the second quarter before picking up.

The Government and the Reserve Bank of India came out with various stimulus measures like tax cuts and making available liquidity to cash-starved industries to weather the impact of the global crisis. However, the stimulus measures, which included tax cuts and increase in plan expenditure to encourage growth, widened the fiscal deficit to 6.2% last year. The deficit is estimated at 6.8% this year as the government continues the stimulus measures raising expenditure to over Rs.10 lakh crore.

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