India's economic growth rate will touch nearly 10 per cent in the next fiscal year ending in March 2008, driven by robust investments and exports, a senior Lehman Brothers economist said.
"You have got rising incomes, very strong credit growth still, positive wealth and confidence effects from the high asset prices, that is countering what is happening on the monetary policy front," Rob Subbaraman, Lehman's chief economist for Asia, excluding Japan, said in an interview this week.
The US investment bank forecasts the Indian economy to grow at 9.9 per cent in the fiscal year that starts on April 1.
Subbaraman said expansion would be boosted by manufacturing.
Data on Monday showed industrial production rose an annual 10.9 per cent in January and manufacturing, which represents more than three-quarters of industrial output, grew 11.6 per cent.
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