Indian economy is projected to grow at 8.8 percent, says the International Monetary Fund in its latest report. It further adds that the Indian growth story will be supported by resurgence in demand from the working class on the back of resilient business confidence that will result in more investments.

The IMF also appreciated India’s efforts to tighten its monetary policy. The Washington-based organisation noted, “India has high inflation, and the tightening of monetary policy currently under way is appropriate.”

Lauding the effort of the growth in the Asia’s two big economies – India and China, the IMF said the growth will have positive impact for the other Asian economies.

However, it says that China will grow the faster than India - by 10 percent in 2010 and 9.9 percent in 2011.

It also says that the world economy would continue to recover “but at varying speeds across and within regions.” The report further explained that global growth was projected to reach 4.5 percent in 2010 and 2011.

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