India's economy is expected to grow at 7.2 percent in 2009/10, the government said on Monday, reinforcing the possibility it may start to unwind its fiscal stimulus in the forthcoming budget.

The official growth forecast is line with other estimates this month and comes amid speculation that India's central bank could raise interest rates even before its next policy review in April to dampen inflation.

Manufacturing, one of the main drivers behind the GDP growth, is seen growing at 8.9 percent in 2009/10, the Central Statistical Organisation forecast said.

Last month, the Reserve Bank of India (RBI) revised its GDP estimate to 7.5 percent from 6.5 percent for the current financial year ending March, and lifted its wholesale price index inflation forecast for the fiscal year to 8.5 percent.

Indian policymakers, including the Prime Minister Manmohan Singh, have said they expect the economy to grow around 7.5 percent in the fiscal year ending March, after slowing to 6.7 percent in 2008/09 as the global economic crisis shaved off growth.