Goldman sees India’s real growth at 8.2%

India's growth in the FY 2010-11 is likely to be 8.2%,Goldman Sachs said in a report.

India’s real GDP growth in the financial year 2010-11 is likely to be 8.2 per cent,on the back of acceleration in domestic demand,especially infrastructure-led investment,Goldman Sachs said in a report.

“We forecast real GDP to grow by 8.2 per cent in FY11 and 8.7 per cent in FY12,on the back of an acceleration in domestic demand,” the report said.

Reforms in infrastructure,fiscal,and financial sectors by the respective policymakers would also be critical for the country to return to the high growth path,it said.

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The WPI-based inflation,which has started inching up now,is likely to go to 6.5 per cent by March,2010 due to rising food and commodity prices,the report said.

Goldman Sachs also forecast the Reserve Bank to hike its policy rates in 2010,starting in January,by hiking repo and reverse repo rates.

Goldman expects 300 basis points of effective policy tightening starting in January with the Reserve Bank hiking the repo and reverse repo rates,according to the report.

This will constitute a removal of monetary accommodation (by the central bank) and moving rates to neutral,it said.