The International Monetary Fund has forecast India's economy to grow at 6.75% in 2009/10 and 8% in 2011/12 on the back of an expected pick-up in private consumption and investment.
It forecast wholesale price inflation of 8.1% at the end of the 2009/10 year in March, and expected it to ease to 5.5% the following year.
"Private consumption would benefit from better employment prospects and less uncertainty, and investment would be boosted by robust corporate profits, rising business confidence, and favourable financing conditions," the IMF's executive board said in a statement on Thursday.
