India is likely to grow by 7.7 per cent in the next fiscal and

RELATED ARTICLES India sees business opportunity in Iran after US, EU sanctions I am losing sleep over rising subsidy bill: Pranab Coke posts 20% volume growth in India in Q4, 2011 GDP growth projection of 6.9% for FY12 disappointing:Pranab GDP in 2011-12 may be above 7%: Rangarajan

by 8 per cent in 2011-12 driven by strong domestic demand, Economist Intelligence Unit, an arm of UK-based magazine The Economist said today.

"Continued strong domestic consumption, spurred by rising incomes and a growing middle class, will be the primary drivers of India's growth," EIU South Asia senior analyst Anjalika Bardalai told reporters here.

However, she also warned that high inflation and weak fiscal position could hamper growth.

"Although we forecast robust growth for India, we must be aware of the risks to the country's macroeconomic stability, including high inflation," Bardalai said emphasising the need for cautious optimism.

The Indian government in its Economic Survey, tabled in Parliament last month, had said the economy could grow up to 8.75 per cent during the 2010-11 from an estimated 7.2 per cent in the current financial year.

"High saving rates and investment levels will support India's continued economic acceleration," Bardalai said ahead of the 13th business round table with government officials.

According to the EIU, India will be continue to reap the benefits of a relatively young demography and strong economic fundamentals.