Financial major Citigroup has said with the easing of pressure on investment, consumption and

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outsourcing, India is likely to grow at 7 per cent this fiscal and 8.4 per cent next fiscal.

"With headwinds to consumption, investment and outsourcing now easing, we believe India has the potential to revert to the 8-9 per cent growth path," Citi economist Rohini Malkani said in a note.

Contrary to earlier expectations of collateral damage from the global financial crisis and the drought taking a toll on domestic growth, FY'10 GDP is likely to come at 7 per cent levels, the research note said.

A look at the key drivers that enabled India to move to a higher growth trajectory indicate India has the potential to move back again to the 8 to 9 per cent growth path, she said.

"We expect growth in FY'11 to come in at 8.4 per cent levels," she said.

For the optimism, the Citigroup cited industry numbers that have been aided largely by stimulus measures, both monetary and fiscal, and the rising share of non-crops (i.E. horticulture, livestock, fisheries and forestry) in the agri GDP.

It also said that the relatively healthy trends in the winter crop appear to have offset the 17 per cent decline in summer output.