India's economy could grow by nine per cent this fiscal year,the highest in three years,and average inflation will be nearly double the central bank end-year targets,according to a review of the economy by the finance ministry. The data highlights how the Indian economy is recovering fast from the global downturn,as well as the difficulties in controlling high inflation that has seen the central bank raise key policy rates six times this year. India's average headline inflation is seen at 8.98 per cent in the year ending March 2011 and the economy may grow by 9 per cent during the same period,the report said. Average food inflation will be 19.95 per cent this fiscal year,a key worry for the Congress-led government as prices of basic foods become a major voter issue. The economy grew 7.4 per cent last fiscal year. The fiscal deficit will not be more than 5.5 per cent of its gross domestic product in the current fiscal year to end-March 2011,according to the report. The report was tabled by the Finance Minister Pranab Mukherjee in parliament on Tuesday.
