UNCTAD projected an Economic Growth of 8.1 per cent for India in 2011

UNCTAD's Trade and Development Report 2011 was launched in New Delhi on 6 September 2011. In the United Nations Conference on Trade and Development (UNCTAD) projected an economic growth of 8.1 per cent for India, the fastest rate of expansion in the world after China in midst of an anticipated global slowdown to 3 per cent in 2011.

According to the report, despite the slowdown in developed countries, the Indian economy is set to grow by 8.1 per cent in 2011 as against to 8.6 per cent in 2010. Surpassing India during the year would be China with a growth rate of 9.4 per, slightly lower than the 10.3 per cent posted in 2010.

India, the report mentioned continues to pursue rapid economic growth (close to 8 per cent), based mainly on strong domestic consumption and investment as well as on the positive contribution of net exports.

UNCTAD's growth projection for India is marginally lower than the International Monetary Fund's estimated of 8.2 per cent and slightly above the 8 per cent level forecast by the Reserve Bank of India (RBI) for 2011-12 fiscal.The various estimates are also in line with the World Bank's projection of 8 per cent in 2011-12 and the Asian Development Bank's 8.2 per cent for the fiscal 2011-12.

The report mentioned that slow down of global economy to 3.1 per cent from 4 per cent in 2010, would impact developing economies which would get affected by recession in the developed world. Even as the developing countries were expected to regain the pre-crisis growth rate of 6 per cent in 2011, economic expansion in the developed economies was likely to be only about 1.5-2 per cent.

The South Asia region was likely to be among the best performers globally, with a growth of seven per cent in 2011. On the other hand, growth in the U.S. was to remain low on account of low domestic demand, stagnating wages. The European debt crisis is expected to act as a drag on the global growth.