UPDATE 1-India economy set to grow 8.5 pct in 2010/11 - PM

Published: 11 Nov 2010 18:33:42 PST

SEOUL, Nov 12 - India's economy is expected to grow 8.5 percent in the current year and 9 percent in 2010/11, Prime Minister Manmohan Singh said on Friday.

"However, high unemployment in industrialised countries threatens a revival of protectionist sentiment, especially since the use of conventional monetary and fiscal tools to revive the economy has been exhausted," he said in a speech at the plenary session of the G20 summit in Seoul.

India's economy grew 9 percent in each of the four years prior to the economic crisis but slowed to 6.7 percent growth in 2008/09.

"Uncertainty about the prospects of inudstrialised countries affects the investment climate and dampens the medium-term growtn prospects of emerging market countries," Singh said.