News: 'Indian economy to grow at 9% in 2007'

(PTI 19/04/2007) New Delhi - India's economy is expected to grow by 9.0 per cent in 2007 as against 9.2 per cent in the previous year despite concerns of overheating, rising rupee and slowdown in US, according to a UN report.

Aiding India's growth will be low oil prices, control on inflation and lesser reliance of its economy on exports, the UN Economic and Social Survey of Asia and the Pacific said.

Presenting the findings of the report, UN Under Secretary General Kim Hak-Su said services and industrial production would be the key growth drivers.

Despite the prospects of good growth, the Indian economy is overheating a little bit and the surplus in Balance of Payments was not there to provide cushion from external shocks, he said.

He said while oil prices were expected to be $60 per barrel as against $65 per barrel in 2006, inflation in India would come down to 5.0 per cent this year from 6.0 per cent.

Kim said while the US slowdown and uncertainty over sustainability of Japan's revival would represent a downside for other economies of Asia-Pacific, India would be isolated as its economy was less dependent on exports.

Even the decline in value of dollar against the local currencies of Asia-Pacific would have an impact on them but India would be spared the shocks, the report said.

Agreeing with this view, Commerce and Industry Minister Kamal Nath, who was present at the launch of the report, said India's growth was domestic market driven.